Credit Cards That Pay…Really?
You have heard the sales pitch or gimmicks that try to get you to use a credit card to pay for a purchase. Offers for credit cards are everywhere. From a casual visit to a chain store, television, the mailbox, to places you wouldn’t expect like a NASCAR race.
They Pay Me
Many of my friends and clients have told me they have “figured out” how to get the credit card company to pay them for using their card. They then go further by saying using the credit card helps their credit score. Maybe you too play into the “I’ll use their money and win” game.
Are you sure you are really winning. Are you really using their money? Are you really getting them to pay you? It may look that way on the surface, but is it real?
If it is real, why are so many people living with debt? Is it that the people with debt just can’t figure out the “system” of beating the credit card companies at their own game? Or maybe, the credit card companies know you better than you know yourself.
The Secret To Beating A Credit Card Company
There is one sure fire way of beating the credit card companies. One sure way of “getting more money” and “showing them” and I am going to tell you how.
To get credit cards to pay you, you must first accept that you can’t win at their game. You can’t increase your bottom line and use credit cards. The sales pitches and gimmicks to get you to use a credit card are put into place for a reason. The credit card companies know from years of expensive research and increased bottom line figures that you will mess up. You will miss a payment deadline, your won’t use the air miles within the allotted time-frame, you will let your reward points expire. Oh sure, from time to time you may get the reward but it won’t be near enough to make up for what you have charged to get that small “savings.”
So who am I to say this about the credit card companies? Well first, I tried to play the game and lost, was it because I wasn’t good at the game? No, I was very good at the game, but like I said above, not matter how good you are, the odds are in favor of the credit card companies. Also, I have a steady stream of clients and potential clients that cross my path daily who have also lost the game.
Don’t Take My Word
Let’s go further into detail.
By using credit cards you are decreasing your income. It is so much easier to “swap” plastic than it is to pull cash out of your wallet. Your thought process changes from “Can I afford it?” to “I have the money, I will charge it on the card” using the card does not mean you have the money. You are using someone else’s money and if you don’t play by the rules of their (credit card companies) game they will charge you plenty to use their money. Like I said above, most people miss a small rule in the play book and lose.
So let’s go back to the sales gimmicks for a moment, you know the same as cash, 10% off your purchase, air miles stuff. You pay your credit card off each and every month you are getting the credit card to pay you. Studies have shown that you are most likely spending more by using plastic than if you used cash. It is hard to let go of a $20 dollar bill. Cash in hand causing you to pause mentally before handing it over to someone else, plastic does not , therefore you are more liable to spend more money on a card then by paying cash.
What ends up happening is you will most likely miss a payment. You broke a rule of the game and now you will be penalized by paying interest, sometimes a lot of interest and in the long run that interest costs you more than the small amount of “rewards” that the credit card company is trying to lure you in with.
How do you fix this?
Make a decision right here, right now to break the cycle. Make the decision to truly have credit cards pay you by NOT using them. Paying cash will give you more money in the long run, as well as put you on the road to paying off your debt (because you are not charging anymore) and finally give you some peace mentally. Being in debt is an emotional burden. Paying cash is emotionally rewarding, that is the real reward.