Friday Financial Tidbit: Want to earn money on your credit card? Pay it off!

Have you ever wanted to earn an automatic 14.65% on your money?  Well the good news is that if you have an outstanding balance on your credit card you can do it because that is what the average credit card annual percentage yield (APY) is today.

Credit: payingoffcreditcarddebt.org

Paying off your credit card balance is a sure way to start keeping your own money.  The key is to first develop a plan to pay off the credit cards then use that plan and attack the balance with a vengeance!

Our strategy on paying off debt is using the debt snowball approach.  The debt snowball works by listing your debts smallest to largest, then while making the minimum monthly payments on all your debt, you put any extra money on the smallest debt, regardless of interest rate.  With each debt you pay off, you then put the amount you had been paying on it towards the next smallest debt and work your way up until all debt is gone.

After paying off the debt, the key is to cut up your credit cards and never use them again!  You can now use the interest you were paying on credit cards and apply it to savings for things such as emergencies and purchases.

Imagine all the things you could with money if you were not paying it to the banks all the time!  So if you are currently looking to save some money and you have a balance on a credit card, make plans to pay it off as soon as possible and start earning 14.65% today.

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