The Worst or Best Financial Advice

Pay off your credit cards - there I said it.

I have read countless blogs/articles etc from many money managers/advisors and always the number one advice they give people is to pay off their credit cards.

Now, if you have an extra $5,000 or $10,000 or whatever you owe on your credits cards sitting in your bank account doing absolutely nothing but collecting pennies for interest then yes, I would say this should be an option.

However, if you are like 80% of the population in North America you do not have this cash sitting around burning a whole in your pocket. AND furthermore if you did, it may not be the wisest choice to pay off your credit cards if that amount is your "rainy day" fund. The optimum solution in this case is to look at your entire financial picture and maybe paying the minimum is the best solution for the moment. Having no access to the $5,000 cash should an emergency come up, where you could not use your credit card, would be far worse then paying that 18% interest for a few more months or even one year.

Always, always always have enough cash in your account for 6 months worth of living expenses....no matter what any money manager says.