Why not turn your Credit Card into a Savings account and make some really good money? We will be looking at some of the ways that you can put your credit card to use.

Most of us own one or more credit cards and before the recession the banks were targeting everyone, even people who did not earn a lot of money. You will also hear people talking about how bad credit cards are and how they get you further into debt. But the truth is that credit cards are just the tool for the banks to make more money from us. We tend to fall into a debt trap as we don’t live within our means.

The problem is that we become so dependent on credit cards that we fall deeper and deeper into debt, and our monthly income is not enough to cover our expenses. We become slaves to the banking systems, making them richer by the day. Instead of making them richer why don’t we make ourselves rich? Instead of living on the banks money why not live on your very own money 100% debt free?

Did you know that if you have a positive credit on your credit card (your own money) most credit cards offer some really good interest rates and the higher your positive credit rate, the higher the interest rate? This means that the bank will pay you money back. This does not apply to all credit cards so you will need to do some of your own research into the banks that you have credit facilities with.

Lets have a look at what a negative debit would look like and how the banks are charging you the earth to lend you this money, compared with a positive credit where the banks would pay you money back.

Negative Debit

If you were paying back money to the bank on your credit card, the debit interest rate range would be anything from 10% to 30% a month, so if you owed $1000 on your credit card, the banks could charge you anything from $100 to $300 (which you do not have because you are borrowing this money from them). This means that you are living over your means. You will probably find that you are only able to pay back the interest owed to the banks every month.

Positive Credit

If your credit card was in the positive, the bank would pay you back a credit interest rate range of anything from 0% to 10% a month, which means that if you had a positive balance on your credit card of $1000, you could make anything from $10 to $100 a month. The more credit you have the higher return you will get.

Let’s have a look at other ways your credit card can help you save:

  • When buying things, don’t draw cash as you get charged for the transaction. Rather swipe your credit card at the shopping stores when buying groceries and goods as the merchant will be charged, not you.
  • Some banks have airline mile partnerships so when you make purchases with your credit card, you will be rewarded with air miles, which over time could buy you a local flight somewhere.
  • Some credit cards that are offered through Medical Aid Schemes or Chain Stores have some sort of payback rewards on the amount of times you swipe your credit card which could help you reduce your costs.
  • Reduce the amount of credit cards that you own to one. This will save you lots of banking fees. There is no need for more than one credit card.

So instead of empowering the banks with your hard earned cash why not start empowering yourself by researching the various options at your disposal and making yourself rich.

If you are interested in finding out other ways to saving money through the recession then click on the link above to visit this blog post.

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