On our Grit Financial Tiktok account, Andy shares advice on credit card hacks.
@gritfinancial Two credit card hacks that can change your lives #financialfreedom #InvestingTips #FinancialPlanning #MoneyManagement #SavingGoals #investmentstrategies #InvestingTips ♬ original sound - Grit Financial
Transcription:
Hi, this is Andy. All right, today in a minute, you’re going to learn two incredible things about credit card debt. On average, the interest rate is about 20%. Here is the first thing, say you’re carrying a $5,000 credit card debt at a 20% interest rate. If you don’t do anything about paying off this credit card, every three and a half years, the balance is going to double. $5,000 will become $10,000, and in another three or half years, it will become $20,000 and in another three and a half years, it will become $40,000. In about 10 years, your $5,000 balance can go to $40,000 and this is what bankrupts people. This happens so quickly.
The second thing I want to talk to you about is forget about investing in the stock market. The best investment you can make is paying off this credit card debt; for example, if your minimum payment is $100. If you pay another $100 on top of that every month, you’re getting a guaranteed 20% rate of return—you cannot get that return anywhere. Think about these two facts ask me the questions here. Pay off that high-cost credit card debt.
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