APY measures the rate of return on an interest bearing asset over a period of one year and is a good tool to measure the best rates between bank savings account, money market account and CD rates.  APR measure the cost of borrowing funds over a period of one year and is good tool to compare the different cost of loans and credit cards.  These tools can also be used to evaluate which assets are providing the greatest return and which debts are costing the most.  If you find yourself falling behind on credit card payments, pay the highest interest rate cards first.   The credit cards with the highest APR.  You may want to use funds from the bank account that has the lowest APY to pay the debt with the highest APR.  While this seems like rewarding those who punish you most, it saves money.

Tags: , , , , ,

No user commented in " APY and APR Meaures to Pay Debt "

Follow-up comment rss or Leave a Trackback

Leave A Reply

 Username (*required)

 Email Address (*private)

 Website (*optional)