Jean Chatzky Interest Quotations

You fall a bit behind on a credit card bill, your interest rate soars, your minimum payment rises, and you start falling more and more behind every month. You don't see an end. But you don't want to file bankruptcy either. What you can do - and should do - is negotiate.

The interest rate you receive, however, is contingent on your credit score.

If you are, consolidating at a lower interest rate can help you pay off your debt faster. But if there's even a small chance that you'll spiral back into debt, it's not for you.

Simply calling your credit card issuer and asking them to lower your interest rate may yield immediate savings.

Debt certainly isn't always a bad thing. A mortgage can help you afford a home. Student loans can be a necessity in getting a good job. Both are investments worth making, and both come with fairly low interest rates.

You'll get the biggest bang for each buck by paying off the highest interest rate debt in your portfolio first, while making minimum payments on the remainder. It's called the avalanche method, and it gets you out of debt cheapest and fastest.

The older you are when you buy an annuity, the shorter your life expectancy will be - so the greater a monthly paycheck the same sum of money will buy you. When interest rates are higher, the size of the paycheck for the same sum of money will rise also.