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Published 7th Feb 2009 Posted by admin |
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“Credit card wealth secrets,” reads the ad. I assumed it was a more-hyped unworkable scheme. Probably, but I did remember the times in my life when I used credit cards to make money. As Robert said Kyosaki, there are “good debt and bad debt. Loans for consumer items is bad debt. Limit your choices for the future, and you have less in life. It seems that more, because now it is obtained, but with interest and the tendency to pay more to buy on credit, you could never buy as much as those who pay in cash. Credit card wealth secrets have to revolve around the idea of “good debt.” It is any loan that increases their income, capital gains or produces. So how do you get your credit card to start doing that for you? Credit card wealth creation A good friend once borrowed $ 6000 from me at 9% interest. I had no money at the moment, but I had a credit card to offer a cash advance for 8 months to 5% interest. I lent him the money for six months. Well, it meant only a 4% spread a $ 120 profit at the end, but it was easy. A better example is when we buy a house in Montana. A cash offer us a lot, so with our savings and a $ 2,000 in repairs on a credit card, which did the work. We paid less than $ 100 in interest before selling the house a few months after the $ 6500 profit. My money was tied up when my brother found a truck that can make some money on. I put on a card, and paid maybe $ 35 in fees and interest. The car was sold ten days later, and we split the $ 950 profit. A friend of mine once offered $ 300 in more than 100% annual interest ($ 50 per two months). Why? To acquire the tools needed to start your business walls dry. Probably made enough the first week to repay the loan. The point is that all debt – whether it be credit cards or other sources – can be good if the debt that generates more than it costs. I have known people who have started successful businesses or “return” of the big gains of the houses with the help of credit cards. Get rich quick? Doubtful, but then my skepticism almost made me forget my own credit card wealth secrets. “ |
