Page 104 - Credit Matrix: The Path to Financial Liberation Red Contract

Hack #7: The Family and Friends Payment Circle**

**Concept Overview**

The Family and Friends Payment Circle is a collaborative financial strategy
designed to enhance the credit scores of its participants through a system of
reciprocal micro-payments. This approach taps into the power of community,
enabling a group of close-knit individuals to help each other build a stronger
credit history.

**Detailed Implementation**

1. **Forming Your Circle**: Start by forming a group of 4-6 trusted individuals who
are committed to improving their credit scores. This group could include family
members, close friends, or even colleagues who you trust implicitly.

2. **Establishing Rules and Limits**: As a group, decide on the maximum amount
each person will pay on another's credit card each month. For instance, a cap of
$50 per transaction is a sensible start. It's crucial that these amounts are
affordable for all members to ensure consistent participation.

3. **Setting Up a Schedule**: Create a monthly schedule that dictates who pays
whom each month. This can be done in a round-robin style to maintain fairness.
For example, in a group of five, Member A pays Member B in January, Member B
pays Member C in February, and so on.

4. **Executing Payments**: When it's your turn, you make a small payment
towards another member's credit card. It's essential to use a secure and traceable
payment method for this, such as a bank transfer or a digital wallet.

5. **Prompt Repayment**: The member whose card has been paid immediately
reimburses the payer through a pre-agreed method. This step is crucial for
maintaining trust and ensuring that no one is out of pocket.

6. **Monitoring and Transparency**: Maintain a shared document, like a Google
Sheet, where all transactions are recorded. This ensures transparency and allows
members to track the circle's activities.