No, that is not a misprint. Even although falling interest rates are good when you want to get a loan, they are bad for individuals with savings accounts.

In this economy your best investment, the best place to put your cash is into having to pay off debts. Think of it as investing in your financial debt simply because that is precisely what you are doing.

If you put $1,000 into a bank savings account earning 2%, at the end of a yr you will have $1,020.

If you have a $1,000 stability on a credit card with a 19% interest price, and you pay the minimum monthly payments, at the end of one yr you will have paid $190 in interest.

If you get $1,000 in a tax refund, little inheritance or from somewhere else you now have a option to make. You can make twenty bucks in a savings account or save $190 by having to pay off that credit card. Keep in thoughts that your twenty bucks is taxable income so you will be left with $fifteen or so after taxes.

Do you need a savings account for emergencies? That savings account might be leading to these emergencies! Think about it this way…

If you are earning cash in a savings account at 2% and having to pay anything more than 2% on your debts you are sliding backwards financially and you will by no means get ahead. It is basic mathematics.

If you make twenty bucks for 5 years in your savings account you will have $100. If you pay $190 in interest on your $1,000 credit card after 5 years you will have paid $950 in interest costs.

In other words you have wasted, lost, burned or flushed $850 by having a savings account. ($950 – $100 = $850) OUCH!

What can you do? Spend off that credit card and use that as your emergency fund. It is not the best way to do it but it’s better than earning 2% and having to pay anything more than 2%.

So, whilst the stock market is on it’s roller coaster and the economy is challenged your best investment, bar none, is your debts! Get them paid off!

Leo J. Quinn, Jr. owner of http://www.LeoQuinn.com is a financial educator from the Albany, NY area. For more than eight years he has been helping 1000′s of individuals get control of their finances and get out of financial debt in a fraction of the normal time. He has a special provide for readers of this newsletter at http://www.1shoppingcart.com/app/adtrack.asp?AdID=132551