Posts Tagged ‘Interest Rate’
Roth IRA defeats Credit Card debt
As you can see, I’ve been gung-ho about investing and personal finance as of late. Receiving my first check, I’ve been thinking of ways to effectively apply everything I’ve learned so far. In my previous post “How to Get a Better Interest Rate on Savings“, I discussed how I decided to open a high-yield savings account with Washington Mutual. So far so good, but I ran into a dilemma. Do I completely pay off my $900 credit card debt this month and wait until the end of next month to start my Vanguard STAR Fund -or- do I pay off my card in 3 months and open my Roth IRA at the end of this month. If my credit card debt had a high interest rate (which it previously did at 21%), I would’ve probably payed of the credit card first; however, I transfered the balance to American Express Blue and I am now sitting at a manageable 4.99% APR. I figure the benefits on investing in my Roth IRA now and slightly delaying the payoff of my credit card debt will outweigh paying off my credit card debt now and delaying investing in my Roth IRA.
