How I Made Over $1,000 From Using my Credit Card Last Year
Last year I used my credit card to pay as many of my expenses as I could including tuition, groceries, etc. Each month however, I would use the card and pay it in full to avoid paying interest on my purchases. The card I used was the Bank of America Travel Rewards card. This card offered points back on all purchases which could be translated into a statement credit every month and applied to travel expenses for things such as hotels, gas, airline tickets, parking, etc. Using the card in this manner, i was able to earn over $1,000 in statement credits throughout the course of the year, and avoided paying interest by paying the card in full each month.
It is believed that the average American household has over $15,000 in credit card debt. In this scenario, most American households would also be paying significant amounts of monthly interest on said credit cards, thus paying interest/finance fees to the companies issuing the credit cards, often at rates from 13% all the way up to 20% or so. 15% on a $10,000 credit card debt would equate to $1,500 in interest paid in one year alone, assuming you were just making minimum credit card payments it would take years to pay off the debt. This is exactly what the credit card companies want. They want you to continue to pay them interest and fees as this has worked out very well for them and allows them to grow in size and become more profitable as corporations. However, it does not work out well for you and your financial well being.
Most millionaires are savvy about credit, tend to use it for large purchases such as a home mortgage, but tend to minimize or avoid its use for many other things, by saving in advance for the purchase, and avoiding purchasing those items which they don’t truly need or would have to use high interest credit cards to get. Statistics show that much of the average American household credit card debt was not accumulated for necessities, but for things these individuals wanted, but did not need. Use credit to your advantage, don’t allow it to become a disadvantage to you and your financial health. This site outlines the high interest rate debt payoff method which can be used to attack and rid yourself of these debts over time. Additionally, you should consider having a cash back or rewards credit card, pay your bill in full each month, and earn money each year from using that card. You can even take the extra cash back and invest it if you like. Think like a millionaire, take action like a millionaire would, use credit to your advantage, don’t let it become a financial disadvantage, and your financial health and well being will continue to flourish.