You want to find a guaranteed 25% rate of return? Just look in your wallet... Full of credit cards carrying high balances with ridiculous rates. Many people believe they are financially savvy if they can lower their credit card interest rate or consolidate it to a card that has a slightly lower rate. Anyone with credit card debt is not financially savvy. Period.
Any credit card balance you pay off will immediately save you on interest which can be as high as 25%. I know of no other guaranteed rate of return this good. Warren Buffet compounded his investments at an average of 20% per year. Even one of the wealthiest people in the world can't consistently generate 25% returns. It is surprising how stupid and impatient people are. I have never understood it. Think about it, carrying a $10k credit card balance each year costs you literally $2.5k. Why throw away this money?
I have come to the conclusion that people are financially illiterate. Why else would someone be so foolish? If they completely understood the financial pitfalls of credit card debt, maybe they would be more wise... How many millionaires have credit card debt? Not many. People may appear to be millionaires but in reality they are just the opposite -- just impostors pretending to be wealthy. The majority of millionaires are inconspicuous.
Don't get me wrong, I use credit cards every week. But I always pay them off immediately and never carry a balance. Credit cards can be a great tool. A traveler can get a card with no foreign transactions. Reward points are also very nice. But when the out of control spender goes on a shopping spree with no money to pay off the balance, a credit card becomes a never ending nightmare. Interest is unforgiving and it never sleeps. Constantly attacking with no relief.
Wouldn't it be foolish to pull a $100 bill out of your wallet, and then set it on fire? It would feel entirely wrong and painful. If your best friend was literally burning $100 bills, you would immediately rush over and talk some sense into your friend. But why don't you have those same emotions with your own credit card debt? It's OK to burn cash using a credit card? But not OK to burn paper cash? If you think it's OK to burn cash using a credit card, please immediately seek medical attention.
When there is no cash to immediately pay off the credit card, purchases on a credit card is worse than burning cash. First of all, you never had the cash in the first place to repay the obligation. Secondly, you will immediately be required to pay interest on the balance for the cash you never had in the first place. Double whammy. Don't pass go. Game over. Don't fall for the trap.
Credit card debt burns money at an incredibly fast rate. Almost so fast that it nearly becomes impossible to pull out of the death spiral. Please, I beg you, get rid of your credit card debt! Never let it come back to haunt you again. Addiction to the credit card drug may be the number one wealth killer. Addictions are tough to kick. Have confidence in yourself. You can do it!