It's Friday and you only get paid! After sending that last check to pay for necessities, food, car payment, rent, etc., you have $ 100 left. What should you do? Save it or pay off debt? It is difficult, a one-size-fits-all answers to this question. Each individual situation, goals and needs are different, and questions must be answered. Firstly, what kind of debt do you have mortgage, student loans, credit cards? They are planning to make some major purchases, such asin a house or car? What are your investment goals / needs? For the next few weeks we will focus on ideas to your savings, debts, make, plan and invest in order. First, who is receiving the highest return on your savings account?

It is hard, hard, hard to save money to speak in any debate, unless you store credit up to 18% interest per month and dig themselves deeper and deeper into a hole, because you only pay the minimum. If you have money ina savings account or a CD (Certificate of Deposit) and the bank pays you a meager 2% to 3% of the shares they are actually earning much more. The bank uses your money to give to companies, for individual loans and mortgages at much higher prices. The banks have more money than you from your own savings – which is the number on your list of goals? If the support of the bank is making money not on your list, we'll see what to do with the fact that $ 100.

Savings versus CreditCard

You have $ 100 to $ 100 or save to pay your debts.

Credit Card Balance = $ 5000

Interest Rate = 18%

Minimum payment = 3% or $ 150 per month

Making the minimum payment of $ 150, you need 226 months to pay this credit card and you have to pay $ 4799.06 just in the interest of the proceedings.

If you think that an additional $ 100, and your monthly payment up to $ 250 increase, you will be charged from the same credit card in just 24 months and in the interest of $ 989.13. That is a savingof 202 months and more than $ 3800 U.S. dollars.

If you hit this $ 100 in a savings plan account at 4.50% interest in the same 24 months, you would pay off that credit card, you would have saved only $ 2615.80. (at 4.50% HSBC online savings account pays the highest interest rates in the U.S.)

Is it better to save the $ 100 to dig or off the debt? We all have different lives and different goals, but the perfect plan for you is appropriate for yourindividual lifestyle and needs. These are your goals, your dreams, your needs, you can afford to lend money to the bank now?