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Why Paying Off Your Credit Card Is Like Investing

This article first appeared on U.S. News and World Report Money.

Personal finance writers, whether on the internet, in magazines, in books, or elsewhere, are usually very strong advocates of investing. There’s good reason for that, of course: assuming that you’re in a financially stable position, investing in things such as the stock market or real estate is one of the best possible uses for your money.

The problem comes with that assumption of stability. The average American household carries just shy of $8,000 in credit card debt. In other words, quite a few American families are carrying enough credit card debt that their financial lives are adversely affected. At the same time, the average credit card interest rate hovers around 15%.