Credit Card Debt




One of the more important steps to building wealth is to avoid carrying revolving credit balances.  The high interest that is paid on this type of debt is crippling.  One of the first things a retirement planner will tell you is to do everything in your power to eliminate credit card balances.  In fact, the only time I would encourage taking money out of a 401k or IRA is to eliminate credit card balances.  The reason of course is the high interest rates associated with credit cards.  To justify carrying these balances your retirement accounts would need to have annual returns in excess of 20% and that is not a realistic expectation in today's investment environment.  Do whatever it takes and eliminate those balances as it will enable greater investment in your own investment accounts
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