Get Paid To Make Payments
Many times, people will often borrow on their credit card and let their balance accumulate. This can be dangerous since not only do you have to pay interest, the payments you are making are not working to pay off the balance you are accumulating. This double dagger edged sword is the reason why many people are in trouble. Were going to show you a trick below where you can turn this dangerous situation into a good one by getting paid to pay off your balance on time. CreditBoosting.com will show you how to do it.
When you let this occur for a long enough period of time, you will have to spend every month just paying interest on the balance. Ideally its best to pay off a huge amount of the outstanding balance at once to reduce the amount of debt.
This is a timeless strategy that works really well for many CreditBoosting.com readers.
Pay off the entire balance for the month so your outstanding debt is zero. Then, use your cash back credit card in order to receive cash back. Now you are receiving an interest payment. Deposit these interest payments into your bank, and over time, watch it compound. You will be surprised by how quickly your interest adds up. By the end of the year, you will have a little extra spending cash for the holidays.
Imagine two scenarios
The first one You dont pay your outstanding balance and let it pile up
You owe $200 the first month and every month. At 10% interest, you will owe $220 the next month. If you just make the minimum payments, you are simply just paying the interest every month. Every $20 payment you are making will just be to cover the interest and you will still have to pay 10% interest on top of your balance every month. By the end of the year, you will lose an extra $200 on top of the balance assuming you use your year ends salary to pay off the entire balance.
Final Additional Costs: -$200
The second scenario You quickly pay off your balance and you earn interest from cash back
You owe $200 the first month and every month. You get back 5% cash back on your credit card. You pay off the entire balance, and you get paid an extra $10. For ever month you have a $200 payment you have to make and you pay it off. The $10 accumulates. At the end of the year, you will have an extra $120 for spending purposes and you do not lose $200. You are ahead $320 compared to the first scenario.
Final Additional Savings and Profits: $320
You do not have to simply spend the money at the end of the year, you can even invest it however you want in many other ways. You can invest in stocks or even a diversified portfolio of CDs. The idea is, you can put your money to work for you so you can earn additional interest. We would love to hear your feedback below. And if you enjoyed this article, feel free to share it with friends.