2 Frightening Financial Facts

It’s easy to get scared with a lot of things. But, nothing is more frightening than knowing some real facts about many people’s finances. Here are some of them:

15 and 25 percent

Credit cards are very convenient. But, they can be very deadly at the same time. They can attack your financial future without you noticing it. On the average, most cards charge an interest rate of 15%. But, for those with bad credit, the interest is as high as 25%. This means that if your borrow $5,000 at 15% interest, paying this amount in minimum will take you 145 months to pay it in full. At this rate, your total interest payment will amount to $3,000. In order to avoid this, try your best to pay off your credit card balances as soon as possible.

Below $1,000

The 2011 Retirement Confidence Survey shows that 67% of Americans have not saved at least $50,000 for retirement. The worst part, 29% of these people has not even spared at least $1000! If you have already allocated $50,000 for your retirement at present, you may feel that it is already enough. However, it actually isn’t. According to the retirement calculator of Bloomberg, if you are 45 years old and you want to spare $1 million for your retirement, you have to save around $17,000 every year until you reach 65 years old.

Credit Cards

Image by 401K via Flickr

But, most people will even agree that a million dollars worth of savings is not sufficient. If you want to secure your retirement, it would be wise for you to act as soon as possible. Save more than what you usually keep. Invest properly. Take full advantage of retirement accounts like IRAs and 401Ks most especially if your employer gives matching funds. Think of working more years and cutting lifestyle costs. Also, consider working on a part time basis even if you are already retired.

Enhanced by Zemanta
Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay

Related posts on loans for people with bad credit:

  1. Student Loans Now Greater Than Credit Card Debt Increasing Student Loan Debt Pose a Huge Burden College tuition fees are costly and difficult to afford. Because of this, students have an additional burden to carry aside from the classes they take and finishing school. The amount of debt from student…...
  2. Brazil’s Union Cut Protesting of High Interest Rates Interestingly, while interest rates in the United States are pretty low and stable for borrowers, there are some other countries that are dealing with high interest rates. And, some of these countries are poverty stricken. Protestors marched the streets of Brazil angrily. They…...
  3. Guaranteed High Risk Personal Loans This article describes a few things about guaranteed online personal loans, and if you're interested, then this is worth reading, because you can never tell what you don't know....
  4. New Guaranteed High Risk Personal Loans The following article presents the very latest information on guaranteed high risk personal loans. If you have a particular interest in personal loans, then this informative article is required reading....
  5. Consolidate College Loans and Get Major Savings As a student that will, in any case, be strapped for cash, it is necessary that they make an effort to learn how, if they consolidate college loans, they can alleviate their financial condition. The simple fact is that consolidation of loans is a step that a student will need...

Filed under: credit cards

Like this post? Subscribe to my RSS feed and get loads more!