But if you have bad credit, that soars up to 19 per cent. That’s about as much as the interest rate on a credit card.
If you hold off on retirement to pay off these loans, putting aside wages to pay them down, you could be saving yourself thousands in interest and creating a cushion to retire on.So why not pay down your mortgage too? It’s not just lower interest rates, although, with the average national mortgage rate for a 5-year fixed at about 6.14 per cent, that is an advantage.Article content
Personal loans and credit cards generally have the highest interest rates. This is especially true with credit cards, which typically have an average interest rate of 19.99-22.99 per cent in Canada.
You should never have credit card debt at any age let alone someone contemplating retirement. You should not owe money on a depreciating asset like a car either. Any fool can spend but it takes a disciplined person to manage finances correctly.