Early Retirement Blog

Who says you can’t earn big returns in a recession?  Even if U.S. Government Bonds pay nothing,  the stock market and housing both lost 40% last year, you can earn huge risk free investment returns.   That’s right, you can earn 9%, 13%, 21%, maybe even 28%, risk free investment returns.   How? Pay off your credit card debt.

In a recession, when other investments yield either low or negative returns, it makes much more sense to invest in paying off your credit card debt.   Every dollar that you invest in lowering your credit card balances  is the equivalent of earning the interest rate on your credit card.

Instead of chasing around looking for investments that will produce big returns, wasting time reading financial magazines and watching CNBC, you can find huge investment returns by simply putting your hand in your pocket and pulling out your wallet.   The plastic inside is an investment gold mine.   High returns, 9%, 13%, 21% and 28% annual returns, are literally at your finger tips.

And best of all it is a completely risk free investment.   The worst thing that can happen, by paying off your credit card debt, is that the credit card company offers to lower your rate.   You don’t have to worry about picking the right investments, hoping  they will do well,  trying to figure when to get in and get out.   You are guaranteed the same high rate of return every month you invest in paying off your credit card debt.

In any case, if you are planning to retire, you should not retire in debt.   Some will argue that stocks are cheap and now is a good time to buy stocks.   That may be, now may be a good time to buy stocks, and then again now maybe a bad time to buy stocks.   No one know for sure.   But one thing is for sure, it is always a good time, to pay off your credit card debt.

Also Read:
How to Get Out Of Debt
How to Save $1 Million
Why You Should Not Retire in Debt

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