I was watching a program on commercial television earlier this week, and an ad for a credit card comparison website came on during the break. The premise of the ad was that you could potentially save thousands of dollars in credit card interest costs by switching to a credit card that charges a lower rate of interest.
In my opinion that is just a complete load of garbage to be making such a claim – I have worked in the finance industry for over 30 years and in that time I have never seen a person become financially better off by switching their credit card from one type of credit card to another.
There is ONLY ONE sustainable way of improving your financial position with regard to credit card usage; and that is to pay the balance owing in full prior to the due payment date each month.
If you are choosing a credit card facility on the basis of the interest rate charged on the card, then you shouldn’t have it in the first place – because the harsh reality that you need to confront first is that you are spending beyond your earning means.
If you are carrying over a balance from month to month on your credit card you are losing, and your credit card provider is winning. An outstanding balance on your credit card from month to month means that you have committed some of your future income before you have earned it – and put very simply you are engaging in financial behaviour that is neither sustainable or emotionally enjoyable.
REMEMBER, a comparison website offering product change does not equal financial freedom – real financial understanding and empowerment comes through education and sustainable behavioural change in the way you manage your own money.
If you are ready to make sustainable change to the emotional minefield that is the current state of your financial affairs then why not join the growing list of satisfied clients who have used my expertise to empower themselves to take control of their own finances.
Contact Leigh at Empower Money Management today.