Winning With the Credit Cards by Not Paying Off Your Balances
Winning With the Credit Cards by Not Paying Off Your Balances
Yes, you're right; if you want to get out of the slave mentality that binds you to banks that issued credit cards to your, start combating the fire with fire. What I'm about describe is highly controversial, however, like Jeff Bezo, the CEO of Amazon I favor the word "disruption" and, at first, you're going to be tempted to answer "Say What? " But, once you've read this entire report, you'll realize that this is a radical idea outside the box that can be effective. So, my first question to you is this Do you own any credit/debit cards stored in your purse, pockets or wallets? Do you carry did you ever have an unpaid balance on your credit cards? If you do not carry a balance do you ever utilize them? How many times have you tried to settle the debt, only to have them be in a better position than you had before? I know a lot of people who say, "Yes, I use them but I pay them off each month," meaning you are paying monthly. Though most people tell you that they pay it off every month according to the Federal Reserve Board (The FED) as of July 24, 2012 the average credit card debt for an American household is $15,799, which amounts to $793.1 Billion. Thus, you're not alone. Many people have issues with excessive spending, especially when with credit cards, and , with the current holiday shopping season, I am certain that lots of people are now getting their monthly statements from credit cards which they are unable to afford to pay off the recent purchases. While you make a vow not to repeat this every year, you make it happen. We've all been there at some point; I remember just a few years ago when it was very embarrassing to make use of your credit card at a grocery store to buy food items. Today, when you purchase cash, the clerk at the counter looks at you like you were a strange person. A NOTE of Interest A Note of Interest Federal Reserve Board data, the city that has the highest percentage of annual income owed by credit cards is Miami which is 22.61 %... so now you are aware of how they cover the cost of those evenings in the city and all the very expensive bags, purses, and shoes. bags. Visit:- https://treca-town.com/ There are a lot of ads on credit cards that are seen on television and other media outlets that say, " If you have a huge debt on your credit cards, phone us, we'll assist "...and When you call, you'll realize that they are people wanting you to pay them off first with cash you don't have. In reality, they're profiting from your money to pay for themselves, not you. Over the past 26 years, I've been working hard to teach many people how to pay their credit card balances , only to find themselves in the same hole one time later... AND we had to work on paying the balance off a second time, thinking they must have learned their lesson. However, in about a year , the pattern repeats... I have even wrote about the cycle in my own book (chapter 14 page 69); "Safer 401(k) Investment: How to safeguard all Your Investments from Wall Street Greed and the Government What percentage of you have seen so many financial experts stating "You must pay off your credit card debts"? If you are one of the 1% of the people who can do this and pay in cash, that's awesome, give yourself a large applause. However, as many people know that, and based upon an assumption of the Federal Reserve Board system, this is not a good idea. What do you need to do? Here's my admonisory: 1.) Don't pay the card issuers, pay only 110 % minimum monthly payment (example if you minimum $100 and pay $110). 2.) Establish an account with a brokerage online such like E*TRADE and Charles Schwab and start using the extra cash to buy/invest in the credit card companies' stocks. Start investing on the exact card you carry inside your purse. This means that if you have an Master Card, buy Master Card stock (MA) and if you're carrying Visa then buy Visa Stock (V) or if you carry an American Express, buy that stock (AXP) as well. Another option, and I believe this is an excellent option for those who can just buy a handful of shares is to purchase shares through the business through their Dividends Re-investment Plan (DRIP). It is as simple as going on the company website and search for their "investors page," then do a search for DRIP (remember even if can only buy one share per month, do it until you have accumulated many shares). The most important thing is to ensure that all shares are registered with the DRIP... On the E*TRADE website, you're required to enroll the day after you buy the first share, and at the Charles Schwab website, you'll be able click the enroll bottom as you complete the trade. Direct Investment Plan You can also phone to the company's main office and inform them that you would like to enroll in their DRIP program (Dividends Reinvestment Plan) and they'll be more than happy to help you become an investor. It may sound insane however, have you observed these massive fires that have erupted across the West Coast? You can see that pouring water on the flames will not stop the fire from spreading. Their best technique is to begin an uncontrolled fire around the perimeters and burn away everything so that once the fire is there, there is nothing left to burn... they are actually fighting the fire with fire! For the average person out there who uses credit cards, you can only be successful if you do exactly the same. Don't try to fight them and join them! Let's review the three main credit cards since they first became publically traded shares. They are American Express, Master Card and Visa. If we assume that a person has put 20% into the average credit card's balance of $15,779 which would be $3,155.80 and had invested that quantity in every one of the three stocks as far as we could discover trading information. Let's start with Master Card first, which is one of my personal favorites. One shares of Master Card when it first became public on May 25th, 2006 was sold at an investment of $4.49*. That means that if you had invested $3,159.00 and you now hold 700* shares which in just eight years, as of Jan 16, 2014 your investment of $3,159 would be worth a whopping $57,529.90 which is enough to pay off the average credit card $15,779 balance. Visa was made a public corporation on March 19,2008; one share would have cost you $54.27*. If you were applying the same scenario of investing, with a 3159 investment, you'd own shares of 58*, and within less than six years, as Jan 16 2014, your $3,159 invested will be equal to $12,913. This is not as high as Master Card, which has traded for two years more however it has risen by more than 300% within just five years, for an annual average growth rate of 60% per year (60 percent annually is still outperforming even a top-end average interest rate of 24%). Last, at but certainly not the least last but certainly not least, is American Express, which has been publicly traded much longer; I can find data available on Yahoo Finance as old as thirty-six years ago. On April 1, 1977 one share was worth $.94*, and using the same model of investing in a $3,159 investment, you would own 3,360 shares. At the time of January 16, 2014, your $3,159 investment will be worth $292,723 - that's more than 18 times what is the normal household credit card balance!  

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