| In fact, when used properly, credit cards
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| | freebies and spend millions of dollars in
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| are a very powerful wealth-building tool!
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| | advertising to hook you on using their
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| I use credit cards for every single
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| | card? They know that there are many
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| possible purchase.
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| | consumers out there who just pay the
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| By using credit cards you get...
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| | minimum sum every month (about 3% of the
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| 1) A two-months interest free loan
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| | total debt you owe), because it is so
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| When you buy a product using your credit
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| | tempting. What's worse is that many
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| card, you will only be billed for it at
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| | credit card owners don't even pay their
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| the end of the month. You are then given
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| | minimum sum on time because of a cash
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| another month to make payment. So, if you
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| | crunch or because they plain forgot.
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| pay off your total bill, you would have
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| | The moment you pay only the minimum sum
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| effectively gotten a two-month interest
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| | and allow your outstanding balance to
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| free loan.
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| | roll, you become the bank's best friend.
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| 2) Bonus points and dollars
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| | This is when they will make a killing off
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| Each purchase you make on your credit
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| | you! Why? This is because banks charge a
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| card(s) will earn you bonus points which
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| | 2% per month interest on your outstanding
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| you can use to redeem for free products
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| | sum. This may seem small, but again,
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| and services like extra flyer -miles and
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| | that's 24% interest a year. Just how much
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| dining vouchers, saving you even more
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| | interest does this add up to? Let's do
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| money.
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| | the sums...
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| 3) A monthly statement that tracks and
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| | Question: Imagine if you had an
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| consolidates all your expenses
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| | outstanding balance of $2,000 on your
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| At the end of every month, the credit
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| | credit card statement, and you just pay
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| card company will tabulate for you the
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| | the minimum sum of $60, how long will it
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| total expenses for the month, making it
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| | take for you to pay off the while
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| easy for you to track your total
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| | balance? (this is only assuming you do
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| expenditure. So it becomes a free money
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| | not charge a single dollar more).
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| management tool.
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| | The shocking answer: It will take you 4.5
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| However, you MUST ALWAYS PAY THE
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| | years! You would have paid a total of
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| OUTSTANDING BALANCE when you pay the full
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| | $3,300, that's $1,300 in interest. In
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| balance every month. This way, the bank
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| | other words, you would pay an actual
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| does not earn a cent off you, but you get
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| | interest rate of 65% off your balance.
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| the three great wealth building services
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| | So when used properly credit cards can
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| mentioned above. This is what I do and
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| | greatly assist you in creating wealth or
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| that is why my bankers hate me.
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| | it can destroy you if abused.
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| So why do banks go all out, giving
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