Debt reduction IS wealth accumulation
Believe it or not, paying off your debts is one of the key factors in accumulating personal wealth. Debts are a drain – once they are settled, the money that you used to put towards them can be redirected towards your quality of life, or invested in improving your financial profile.
Let’s take credit cards, for example: seemingly simple to use, but they can add to your personal debt exponentially. Not to say that they aren’t a great help – but improper usage can put your financial stability at risk.
What you may not be aware of is that paying the bare minimum every month may make your debt balloon over time. Worse still, if you miss a payment or fail to make the minimum for even one month, banks have the right to hit you with the highest possible rate (approximately 18% per annum).
On top of that, if you are still paying down student loans or about to take out a mortgage, the last thing you need is credit card debt putting your financial stability at risk. If you’re looking into getting a credit card, look into the details (interest rates, terms, penalties, etc.) and – especially important – the proper ways to use one.
Catching up, with help from KDI
Your 30s puts you in a better place to invest (in terms of having funds and goals), and there’s nothing to stop you from saving for the long-term while simultaneously pursuing a more aggressive investment strategy.
For wealth accumulation long-term, look to KDI Invest, an Artificial Intelligence-driven robo-advisor that takes your individual risk profile into account when investing your money.
If you’re looking for low-risk short-term funds, KDI Save offers better rates than a typical fixed deposit account, with daily returns, and the ability to cash out whenever you want.
So don’t worry; financial stability is well within your reach.