Your bank says they will pay you one-half percent on your savings balances. You are earning even less than that on your money market account. Stock mutual funds? Why you’ve given up on those a long time ago. The last $1,000 you threw into one of those is now worth about $800. Savings bonds, treasury bills, bond and gold funds, the returns seem hardly worth the effort of filing out the paper work. So where does an investor turn in times like these? 

Interest rates are historically low and stocks are historically volatile. So instead of wasting your time chasing measly little returns on investments or running the risk of getting caught up in another major market downturn, think of this as a great opportunity to get your financial house in order. How? It’s really very simple. Invest in your own debts. 

Amazingly enough, millions of people still carry balances on high priced credit cards and almost everyone has a car loans, a mortgage and a home equity. Even though the interest rates on these debts many seem low, especially if they are variable, they are still often considerably higher than what you are earning on your investments. Even a recently refinanced mortgage, after the tax benefit can be considerably higher rate that what you are being paid on your savings. So as a short-term strategy, consider using some of that money you might otherwise be investing in more normal times, to pay down on these debts.

This is not to say that you should empty your savings, after all in difficult economic times savings money, regardless of the poor return, may be a good idea. But people usually don’t look at paying down debt as an investment opportunity and they really should. It’s an investment in your own future. So if you want to earn 18% on your money without going to the casino or playing the commodities market, just start paying down the balance on your 18% credit card. It’s guaranteed! 

For more information visit www.theunfinancialplanner.com