It’s easy to find yourself in debt nowadays, especially credit card debt. With low interest rates, governments are literally trying to stimulate the economy by stuffing debt down our throats. This way, they can hopefully keep the economy growing long term. But, there is a way to flip the script and make debt work for you.
Understand The Difference Between Unproductive And Productive Debt
Firstly, you need to understand how the difference between unproductive and productive debt. When you learn how to make debt work for you, you can grow your wealth and stay out of crippling unproductive debt. Some of the worst kind of debt is CC debt due to extremely high interest rates.
Credit Card Debt Is Bad
Secondly, CC debt is bad yet the average US household has $5,700 in CC debt at an average 16.03% interest rate. When Americans pay the minimum with the average debt, it will take 30 years and $59,340 to pay off $5,700 in debt. So, it’s important to get rid of credit card debt.
Flip The Script With Credit Card Rewards
Lastly, credit cards are not all bad. In fact, you can make credit cards work for you when you pay the balance in full every month. By thoughtfully picking credit cards, you can earn rewards redeemable for serious cash back, travel, or other rewards. Check out our top 5 rewards credit cards in September 2020.
Credit card debt is bad, yet credit cards are great for those of us that pay our bills in full every month. When you pay your CC bill in full every month, you earn valuable rewards for using your credit card. You can finally flip the script on the CC companies and have them pay you every month instead. In addition, your credit score will improve long term allowing you to borrow at cheaper interest rates in the future.