Know that sinking feeling? Millions of us dread the moment the credit card bill arrives each month - but it doesn’t have to be like this. I’m going to show you a better way and I’m also going to get you to spend more money on your card each month! Am l nuts? We’ll see.
The homepage of my website talks about “money control”. People worry about money, because they struggle to control it, it’s not always about having enough or too little, the worry comes from lack of control.
Okay so back to the credit card, I want you to change your thinking. We are going to take back some control.
Question: What is a credit card?
Answer: It is a means of paying for goods and services using someone else’s money. As simple as that.
And get this - it’s a way of using someone else’s money for FREE and you can get bonus points or cash back to buy more free stuff!! Or airplane tickets, vacations, you name it!
The following is a strategy I started using years ago and I wanted to share it with you.
For now, forget your current credit card, let’s start from the beginning. Go out and find yourself a good credit card that has a cash back, or points scheme. These vary a lot and don’t just run to your bank, there are lots of options. I can also provide some suggestions.
Next, make a list of all your monthly expenses and find out which expenses can go on to a credit card, which will be nearly all of them, including heat and electricity. Don’t forget gas, groceries, cable, parking, entertainment etc.. Place as much as you can on the card. these are the usual expenses that come out of your bank account.
Next, cancel all your direct bank payments to vendors and switch them to the new credit card.
This is what will happen - the income that flows into your bank account will stay where it is. You may even get some interest on it. Your monthly expenses will now rack up on your credit card and you will earn points or cash back.
Now here is the important point, when the credit card bill comes in, you PAY IT OFF IN FULL from your bank account. You have now had a months free money and a load of points totting up. You also have all of your expenses in one place!
I’ve been working this strategy for years and always share it with my clients, it works like a dream, but you must be disciplined and pay that bill off. What else does this do? It gives you MORE CONTROL over your money.
One last thing, if you have debt on your current card you are concerned about, call the credit card company and ask for a lower interest rate (yes they will listen). You can also move it on to a line of credit at a lower interest rate at your bank.