Most people borrow money at some point in their lives. Some debt, like mortgage debt, can be a wise choice, particularly if it allows you more money to invest in your retirement account. However we urge clients to avoid credit card debt.
Credit cards can be a good deal for the consumer, as long as you pay the balance in full every month. If not, the card companies charge a very high interest rate and this debt can quickly mushroom into an overwhelming burden. If you have credit card debt, make a plan extinguish it by paying it off month by month in a disciplined way and stick to your plan. Don’t be tempted to take money out of your retirement account to pay your credit card bill. It will cost you more in the long run.
