Avoiding debt

This might seem obvious, but debt is the enemy of investors. Just as the magic of compound interest can work in our favour, it can also be our undoing when working against us.

Most investors are lucky to get a consistent 5% return each year. When you look at the interest rates charged by credit cards, it's far in excess of that.

Needless to say, investing is a waste of time whilst you have high interest debts.

To calculate the interest paid on debt, you can use our interest calculator.