Page 114 - The Millionaire Mindset

Strategy 4-11:

Pay off the credit card balances
as soon as possible.

Consider taking out a loan to consolidate all of your high interest rate credit cards.
For example, let’s say you carry department store charges of $3,000 at an incredible interest
rate of 28.8%. Over the course of a year, that interest would cost you $864. If, instead, you
pay back your debt through a personal line of credit at a lower rate of 10%, it would cost
you only $300 to service that original $3,000. You would save $564.

Credit Crunch

If you’re the type of person who can’t keep track of receipts then adopt a Today
system with two or three credit cards. Use one for all automobile expenses, another for is a
all entertainment. Your monthly statements will give you an easy reference record of great
expenditures. Remember, though, don’t get in the habit of letting balances be carried from day
month to month!

Strategy 4-12:

Replace high-interest credit cards with the
lower rate cards and preferably a
“No Annual Fee” card.

Once you find out how much money you are spending on the higher rate cards,

you will be shocked. Seek out lower-rate cards. More and more companies are offering
low-rate cards.

Money saved with a 12% versus a 21% credit card
Millionaire 8,000
Average Bal. Interest @21%/year Interest @12%/year Amount saved

$1,000 $210 $120 $90

3,000 630 360 270

5,000 1,050 600 450
Mindset 10,000
1,680 960 720

9,000 1,890 1,080 810

2,100 1,200 900

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