What Banks Don't Tell You About Debt

debt

Wouldn't it be nice if you could have all the nice things that you wanted right now without paying a single dollar? All you have to do is find what you like and then do what everyone else does, "Finance it" as much as people like to tell you that money isn't important, the reality is money issues are real and they are destroying lives and families all over the world

Financial problem is arguably depending on which server you read, the number one cause of "Divorce" in the United State, financial problems can cause a huge amount of stress and tension because it costs money to eat and it cost money to feed other people, to drive a car, and it cost money to do everything else

According to the federal reserve, 46% of American cannot afford a $400 emergency without going into debt, so money problem is more real than ever right now. You and I might say that is crazy, bank are saying whoa that's amazing because now when you want to buy something 

Guess what where you're going to get the money to buy it.

I'm an entrepreneur and I understand that businesses have to make money to survive and banks, well, they make money by lending money, however, this does not mean that we should all just sit here and be financially stupid so banks can come here and just skin us all alive

Here are 4 things I need you to understand about debt and credit and I guess money in general

1. Because The Masses do Something Does not Mean As Good.

  • Right now American have more debt than ever, 80% of Americans living in debt.
The average American household has over $8,000 worth of high-interest credit card debt and we as a society are becoming more and more reliant on debt every single day
Americans as now have over 1 trillion dollars of credit card debt, housing debt, auto loan debt, and Stuart loan debt, They say that modern slaves are not in chains, they're in debt, and this is why I mean it is impossible for a society to sustain itself forever when people are drowning in debt


2. You Can Get Paid To Be Different

Let me show you two different alternatives

At the end of every year, the majority of people get a fat bill from their lenders saying this is how much you owe us in interest

On the other hand, you have minority people who don't get a bill they get a fat check from their credit card companies, do you want to know why? It's because they never carry a balance, see credit card companies understand that if they perks like 1 or 2 percent cash back, 8 out of 10 people will try to take advantage of this money-making opportunity

Then you have to pay 20 to 25% interest for every dollar that you spend. 

Read How To Pay Off Debt on a Low Income

Here's how you can win the situation

If you can control your spending and you will only buy things that you can afford and you will pay off your entire balance every single month, then you can get paid for your regular spending, 

But if you cannot control your spending then get rid of your credit cards and pay with cash. 


3. The Credit Card System Is a Big Game

The credit system is one big game where you have one loser than winners. Your credit score is a number that rates how good you are in a debt and then it ultimately allows you to get access to even more debt

Read
  1. How Your Credit Score Works
  2. How to Check Your Credit Score For Free
  3. What Is Considered A Bad Credit Score
  4. What’s Considered “Good” Credit?
Your credit score is kind of like Valentine's Day, everybody has their own theory as to why it exists, but nobody really knows and nobody really likes spending money on it but everybody feels obligated to participate. 
Credit card bureaus and lending agencies are making billions because they created a game out of helping people buy things that they cannot afford.

Yet somehow even while making billions of dollars they still can't manage to keep your information private, but I guess that's a topic for a different article.
Unlike what the majority of people say, you do not need to finance your car, you actually should not ever finance your fridge and you can actually have a great credit score while paying off your credit card balance every single month.


4. Wouldn't Be Great If your Money Made You Money

We have talked a lot about investment on this website and one of the most common questions that we get is how can I consistently get a good return on y money.

Read 5 Secret To Get Out Of Credit Card Debt

Investing your money is great and I think it's something that everybody should do but if you have high-interest credit card debt it doesn't make sense to go out and invest your money and get a 6%, 7% or even 12% return on your money when you have to go and pay 20% in interest to your bank.

Read How to Get Rid of Credit Card Debt Fast

Go out and pay off their credit card debt as fast as possible first and then go and invest your money and build your wealth



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Author:

Hi, i am Micheal, the guy behind Roadtosuccesse. I share tips and tricks to help take a business to the next level, show which systems I personally endorse and use, share what I learn as a student of the game, and help people with personal development so that they can reach their full potential.

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