13 Aug Credit Card Terms are Oppressive
A colleague asked me what the impact on credit card debt using CashMap’s strategy. I’d never been asked before. I did a little research and learned that as of 2019, the average American household with revolving credit card debt has a balance $6,849 at 24 percent. Ouch!
If a household was making the minimum payment of $136.98 and had only $200 left after they paid all their monthly expenses, the standard options available to them are depressing!
Using CashMap’s strategy, if they were to secure a personal line of credit at 10 percent, the card will be paid off in 23 months and they will pay just $251! If the line was at 24%, total interest payments will be $555. These results are achieved without changing the family’s budget.
If they continued to pay the credit card company $136.98 per month, it will take 45 years to pay off their card. They will pay $67,122 in interest.
If they wanted to use the traditional approach and pay off the card in two years, their monthly payment will be $362.11 and the total interest they will pay is $1,841.74.
Why is CashMap’s strategy so much less? They did two simple things: They shifted their income to the line of credit, and they scheduled and paid their living expenses on the last day of the line of credit’s billing cycle. Putting your dollars to work creates amazing results!
The fact that banks aren’t teaching this simple strategy is unconscionable! Imagine what this family can do with the additional $66,871 – savings for a child’s education, a down payment for a home or money that can be accrued for retirement. Instead, a bank is profiting. Wrong, wrong, wrong!
I’ve been told that getting a line of credit and rescheduling paying my bills is too much work. Really?? I’m left scratching my head – taking 20 minutes max to reschedule the day a pay my bills isn’t worth saving $66,871 and being done with the debt in 23 months. Folks, I just don’t get it!
I called one of Washington State’s largest credit union. I learned they offer personal lines of credit in $1,000 increments beginning at 10%. These results are so stunning, I’m shocked and am creating a new video about the results. Watch it here, and follow along with this handy downloadable: