In Wednesday’s online edition of Marketwatch.com (part of the Wall Street Journal Online), the lead article was “Mark Cuban explains how to make a 16% guaranteed return.” The article cuts to the chase – indicating:
“Americans carry an enormous amount of personal debt. The personal finance site, NerdWallet put our revolving credit card balance at $420.22 billion in late 2018.
That’s not considering total credit card debt, which is $944 billion, or the multiple trillions in mortgage, auto and student loan debt. The revolving number is just the credit card debt we carry from month to month. It works out to $6,929 per U.S. household. Meanwhile, according to Credit Karma, the average rate on that debt was 15.96%.”
Cuban then goes on to say what I like to hear, “Get rid of that debt – and you are making 16% on your money, by not paying the interest!”
He gets it! Are you surprised that he understands this, given his financial success? It’s simply plain common sense that is missed or ignored given the pressure to spend beyond your budget’s tolerance. He illustrates the numbers – in a similar manner to how (I hope) you have seen me, on previous blasts:
“Let’s say you have exactly the typical American household credit balance of $6,929 and carry it for 20 years at 16%. You end up paying $135,038.
Now let’s say you invested that amount instead and earned 8.8% over 20 years. You end up with $37,486.”
As the amount of credit card debt you carry increases, the numbers escalate. Cuban’s numbers are based on 15.96%, but many credit cards are charging north of 29% interest. Even at $6,929, the hit toward your retirement over 20 years is $135,000… major! The reality is – we all have choices – get rid of the credit card debt and stop paying interest so that you have money to retire; or continue down the path of financial ruin – leaving yourself with nothing to retire with.
Guess what the Cuban article says about “Your Credit Score”? The answer is NOTHING – because your credit score is NOT the issue – your financial future is.
Rest assured, credit scores recover when you get rid of the debt. Cuban’s article does not tell you how to get rid of the debt. The good news is – that is what we do – day in and day out – and we have a great FREE SEMINAR next week, Wednesday evening February 27, 2019, titled, “Get Out From the Credit Card Trap – and Enjoy Life.”
We will show you your options to get rid of credit card debt and to resolve tax problems – and then you make the right choice for your future. Sign up below.
P.S. Did you know that THAV GROSS offers free consultations for business, financial, and tax problems? Call us anytime – (248) 645 – 1700 or CLICK HERE to send us a message.