Paying Off Your Credit Card Balance is Even BETTER Than You Think

The Best Investment Goin’! An even smarter move than smart people think.

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Seriously, pay close attention to this video because it has an important insight that doesn’t get nearly enough attention. It really does. Plus, this video is very short. I’m not asking for much of your time. Most people know that paying off your credit-card balance is one of the best financial moves you can make. Nobody argues that. The interest rate you’re being charged is crazy high, 20%+. So, paying it off or paying it down, well, you’re earning an over 20% return on that money. After-tax! Guaranteed. C’mon. A true no-brainer. Top priority, unless your company has a great matching plan on your group RRSP.

And you nutty people out there who have lots of cash sitting in your bank account, sometimes a lot, a lot of cash, earning almost no return while also carrying a credit-card balance. Geez. No Wealthy Barber hat for you. But here’s the thing about people who save hard and do a great job ridding themselves of credit card debt. So important. It’s not just a great return that’s a positive. In many cases I’ve seen, heck most cases, that effort, that action, jump started the person’s overall financial-planning efforts. Other good moves followed. I’ve witnessed this over and over again. Getting rid of that high-cost debt inspired them.

They’ve accomplished something very meaningful. And it required discipline. And it required a change of mindset. And those positives stick. An I-can-do-this-and-what’s-next attitude often follows. Sounds corny but it’s true. Pride and confidence are up. In most cases they didn’t just go back and run up their credit-card balances again. The opposite took place. If you have a credit-card balance, throw all of your effort into eliminating it. It’s an even smarter move than the smarter people say it is.