Guest Post by Mickey Colon
Being in debt is no fun at all. If you considered it and looked back on those trips you took in college, those late night cramming sessions and next day benders, those concerts, those meals, those experiences – you might not want to take any of them back. But you might have just considered paying with cash.
Still, life moves on and it’s not so strange to become so overwhelmed you find you need help with your debt. While trying to get out of debt you may wonder what else you should be doing. Maybe you should be investing? Before you drop a dime into a brokerage account, consider the following points about investing while you’re in debt.
What’s Your Situation: The first thing you need to discover is what your situation looks like. What are the regular bills (rent, electricity, cable, phone, Internet), how much money is coming in, and what do your credit cards look like? If you’re spending more than you’re making you may realize why you’re in this fiscal house of horror. You’ve got to get your spending and your overall financial situation under control before you get help with your debt.
Interest Rates: Another thing you need to consider about your debt is what the interest rates of your bills are. Credit card companies have huge interest rates; especially for balances that have been late (it only takes one late payment, too). Call your credit card provider, find out the interest rates for your specific financial situation, and see if you can’t negotiate that down. You can always play them against one another. You could tell one credit card company that another has offered to take on your balance with their bank at with lower interest rates. See if they can’t beat that.
Investing: That hot shot friend of yours from high school is a big investor and day trades or works on Wall Street. While you could rue the day you read J.D. Salinger and decided that math wasn’t as interesting as theatre, you can’t change the past. The biggest point about investing when you’re in debt is you can’t pay (we’re talking interest rates…) more than you’re making. If you think you’re going to drop some cash in the market and it’s going to go up 10-fold, see the Facebook IPO (FAIL!!).
Investing while in debt is tricky. To get help with your debt you need to assess your situation and see where you stand before you commit any capital to market.
Bio: This article was provided by America’s debt help Organization, Providing you with up to date information on Mortgage Modification, Credit Card Counseling, Retirement and Veterans Debt Management.