Do you know why paying the minimum payments is a long term trap set up by credit card companies? If you’re in debt, do you know why you should follow the strategy of big banks to get out of debt? These are innocent mistakes made by consumers who are trying to get out of debt. But these mistakes are small potatoes to the most common mistake of all – Not knowing how credit card companies use YOU to create profits.
Here’s the problem:
Competition for profits in the credit card industry is at an all-time high with new payment technologies coming out that are squeezing company’s profits. These companies must find new ways to push profits, even at the expense of the consumer. So few people even know about these strategies, it gives you an almost unfair edge.
Here’s what you should do:
1. Follow Big Business
If you’d like to get out of debt, the best way to learn is to see how big corporations handle debt. They learn how to make debt work for them and use it to profit. They clearly understand the loopholes that banks and credit card companies don’t want you to know.
2. Avoid The Monthly Payment Trap
First realize that your monthly payment is calculated by the banks to MAXIMIZE their profits. Companies don’t have interest in you paying off your credit card debt because that hurts their profits. Realizing credit card issuers are companies looking to maximize profit at your expense is helpful to getting out of debt.
3. If you get in too deep, get help
If you get to the spot where you’ve gone 6 months or more and the amount you owe on your credit cards is not decreasing, then seek the right kind of help. You still have a number of options to get out of debt using the money you already earn and without hurting your credit.
Remember, debt doesn’t have to rule your life, your marriage and your family. You can be debt free if you take action on the right information.