The Great Credit Card Mark-Up

If you don’t know what your interest rates are, you are likely to be bleeding high interest payments every month.

This means that you are loosing your retirement savings by thousands every year. I know, because I used to do it as well.

In my professional experience dealing with clients, the ones who had no clue about interest rates were the ones who were shocked into temporary shame.

Roger, a client of mine was a good guy, he paid his bills on time. But he didn’t have the financial education that he needed, and he paid too much for his lack of financial education.

Rogers’ lack of knowlege was costing him $220 a month in minimum payments.

I told Roger that he was only paying 2.11% of his $10,300 of debt. Roger asked me “why would they [the credit card company] do that to me? I’ve paid them on-time, every month, for over 13 years!” I replied, “it’s not personal Roger, it’s business.”

The Mark-up

You know the way that stores buy products from Wholesalers and then “tack on” their cost before they sell it to you? It’s the same way with Interest Rates. Just like in a store. Some prices on products are better than others.

Credit Cards offer products that they later tack extra interest on. Sometimes these fees are excessive and other times down right abusive.

But the end is comming. The “Anti-Debt Revolution” as begun. Bookmark us for updates.

Support the War On Debt. Send us your comments and or questions.
Media inquires? email: Jford@debtwarriors.com.
Wishing you financial security. We are Debt Warriors!

The Great Credit Card Mark-Up

If you don’t know what your interest rates are, you are likely to be bleeding high interest payments every month.

This means that you are loosing your retirement savings by thousands every year. I know, because I used to do it as well.

In my professional experience dealing with clients, the ones who had no clue about interest rates were the ones who were shocked into temporary shame.

Roger, a client of mine was a good guy, he paid his bills on time. But he didn’t have the financial education that he needed, and he paid too much for his lack of financial education.

Rogers’ lack of knowlege was costing him $220 a month in minimum payments.

I told Roger that he was only paying 2.11% of his $10,300 of debt. Roger asked me “why would they [the credit card company] do that to me? I’ve paid them on-time, every month, for over 13 years!” I replied, “it’s not personal Roger, it’s business.”

The Mark-up

You know the way that stores buy products from Wholesalers and then “tack on” their cost before they sell it to you? It’s the same way with Interest Rates. Just like in a store. Some prices on products are better than others.

Credit Cards offer products that they later tack extra interest on. Sometimes these fees are excessive and other times down right abusive.

But the end is comming. The “Anti-Debt Revolution” as begun. Bookmark us for updates.

Support the War On Debt. Send us your comments and or questions.
Media inquires? email: Jford@debtwarriors.com.
Wishing you financial security. We are Debt Warriors!

2 of 5 Questions To Help You Get Out Of Debt

What Is Your Debt Vs. Income Ratio?

After you helped me understand the reason’s for your debt, I would then ask you “what is your debt vs. income ratio“.

I would ask your debt vs. income ratio to plan your strategy for victory in your war on debt .

In Glenda’s case, her total debt was only around $1,800. She owned her home and car, so that wasn’t a problem financially. The problem was that the majority of Glenda’s debt was from interest was being stacked up like sand bags on the shore.

Glenda’s was making $1,980 per month so a $50 payment wasn’t hurting her finances in the short term. But in the long term, her interest rate of 29.99% was defeating her dreams for early retirement.

I asked my self, “what can I do to help her get out of debt“? In Glenda’s case, I recommended that she do a balance transfer to a card with a lower interest rate. The problem was Glenda was once bitten by a credit card and now twice shy, so she declined that offer.

Plus, honestly a lot of my client’s are skeptical about everyone, because they trusted themselves or someone else before and ended up in debt.

I tried to convince Glenda that moving her money to a lower interest rate card would save her all of her interest – every single penny. I had some cards in mind that provide Glenda with world-class service and have great long term low interest rates.

Glenda didn’t want another card. Period.

I said “OK, you’re the client, let’s move forward,” and I gave her my final option. But this option was awesome.

I recommended that Glenda make a statement payment plus $30 every month, meaning that Glenda would pay $30 more than her minimum credit card payment each and every month, until the bill was paid.

Glenda said, “oh my“ when I showed her how making a minimum payment plus $30 every month, would reduce her total payment’s on that credit card from 1,242 payment’s to only 55 payment’s.

Glenda was shocked and amazed when I showed her that by making her minimum payment’s plus $30 each month, would save her $29, 316 in interest.
(click the image for a larger view)

Glenda agreed that she could easily make an extra payment of $30 every month.

What I did was show Glenda, in living color what she could do to eliminate her debt in a fraction of the time, without defeating her dream of an early retirement. But what it was based on was her debt to income ratio.

What do you think? Share your comment’s regarding any post you see here. Or if you have specific debt related or media inquires contact jcarltonford@yahoo.com

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