How To Earn A Guaranteed 19% Return On Your Money

Most of us are searching for ways to put our hard-earned money to work. This usually involves finding the right balance of risk vs. reward through a combination of investing in stocks, mutual funds, GICs, real estate, etc. Sometimes the simplest and best return for your family is sitting right in front of you…CREDIT CARD DEBT.

The average Canadian household is holding $4,240 of debt in credit cards.  The average credit card interest rate in Canada is 19%.  If you paid off that credit card, you would give yourself a 19% return on your money.  It’s that simple.

If you have no credit card debt but you have a LOC, student loans, consolidation loans, or a mortgage, you could guarantee a rate of return equal to the interest you are paying. For example, paying off student loan debt of 7% would equal a 7% rate of return.

You would be hard pressed to find that return anywhere else without leveraging yourself or taking on some sort of risk to your initial capital investment.  I understand that paying off your credit card might mean sacrificing vacations, nights out, etc., but not paying off your credit card is costing you insane amounts of money.

Example:
$4,240 of credit card debt at 19% interest

Making just the minimum payment of $68/mth would take 23.2 years to pay off and would cost you $14,646 in interest.

Getting rid of this debt is the best bang for your buck with a guaranteed return on your money…19% to be exact, and no risk.

It’s something to think about.

Credit cards have their purpose.  They are convenient. They offer rewards programs. But don’t trade in convenience and those rewards for hard-earned cash.

If you are carrying high-interest debt and want me to look at a solution for you, then we should talk.  It doesn’t hurt that interest rates have dropped in the past 30 days.

“The greatest rate of return you will earn is on your own personal spending. Being a smart shopper is the first step to getting rich.”  Mark Cuban

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