Growing Your Gratitude

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“The single greatest thing you can do to change your life today would be to start being grateful for what you have right now. And the more grateful you are, the more you get.” — Oprah Winfrey

By cultivating a life of gratitude, you will be able to feel joy no matter what your circumstances are. As dark as things might seem, if you can dig deep and find something to be grateful for, your whole attitude can change.

According to an article in Psychology Today, “Scientists say that these techniques (focusing on gratitude) shift our thinking from negative outcomes to positive ones, elicit a surge of feel good hormones like dopamine, serotonin and oxytocin, and build enduring personal connections.”

Being grateful shouldn’t be reserved for those times when it’s easy to be grateful, either. Gratitude promotes life. It’s optimistic. Practical. It takes courage and brains to be grateful.

Gratitude clears the way for positive choice and change. It motivates and moves you into a higher place so you feel better. Hopeful. Strong.

When you appreciate things you’re kinder. Gratitude boosts you physically, mentally and emotionally.

Gratitude helps you build wealth

Nourishing yourself with gratitude makes you feel stronger, more alert and alive. It builds up and strengthens your entire body, mind and spirit.

Six strategic steps to fill up your gratitude account:

  1. Call it “intentional gratitude” or “conscious appreciation” but build a new habit of expressing gratitude frequently. It will make you feel fortunate, powerful and kind.
  2. Create a specific daily mantra for yourself — a prayer, wish, vow or commitment —
    ‘I am grateful for_______________’. Have it in your mind. Say it to people. Write it in notes and emails.
  3. “Thank you” takes one second to say. Consciously look to express it and do good things often. Don’t miss an opportunity to be grateful.
  4. Start a Daily Gratitude Journal – Write 3 things you’re grateful for every night before bed.
  5. How does gratitude live in the world? Look for examples in music, art, literature, daily life, history, people you see and know.
  6. Acknowledge negativity and counter it with genuine appreciation and thanks.

“Gratitude is strongly and consistently associated with greater happiness. Gratitude helps people feel more positive emotions, relish good experiences, improve their health, deal with adversity, and build strong relationships…regardless of the inherent or current level of someone’s gratitude, it’s a quality that individuals can successfully cultivate further.”

References:

  1. https://www.huffpost.com/entry/grow-your-gratitude-six-easy-steps-for-smart-people_b_5760096
  2. https://www.aplanforjoyinthehome.com/grow-in-gratitude/
  3. https://www.seventeen.com/life/a37198250/gratitude-quotes/

Student Loan Debt Forgiveness…Shifting the Burden to American Taxpayers

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Americans collectively owe more than $1.7 trillion in student loan debt, more than three times what it was just 15 years ago.

Many progressive Congressional lawmakers have called for President Biden to forgive all federally owned student loans.

Others lawmakers have argued for up to $50,000 in forgiveness per borrower.

Recent reports suggest the White House is more likely to forgive $10,000 and include an income cap that limits relief to high level borrowers. This more limited approach of forgiving $10,000 would provide relief to people who need it most while ensuring that high-earning borrowers like doctors and lawyers don’t get a bailout.

The White House has also repeatedly extended a pause on loan payments that was put in place by the Trump administration in the early days of the pandemic. That pause has included a freeze on interest, which on its own has saved the average borrower about $5,500, according to one estimate.

Why there’s debate

Supporters of student loan debt forgiveness say the enormous financial burden of loans, many with onerous interest rates, make it impossible for college graduates to get ahead.

Debt relief would directly affect around 43 million Americans. It is believed that forgiving student loan debt would free those people to spend their money on goods and services and would create significant economic benefits for everyone.

Many also argue that debt relief would help reduce racial inequality, since people of color tend to borrow significantly more than their white peers.

Opponents of student debt forgiveness say it would be unfair to the vast majority of Americans who don’t have student debt — particularly those who paid off student loans on their own. Additionally, federal student Liam debt forgiveness doesn’t erase the debt, it only shifts the burden from the borrowers to the American taxpayers, who are already burdened with the tad of inflation.

Some make the case that there are much more effective ways to reduce inequality. Others argue that it would be wasteful to forgive student debt without also taking on the much more difficult task of fixing problems in the higher education system that created the student debt crisis in the first place.

What’s next

If Biden does choose to forgive some student debt, it’s not clear whether the courts will uphold the executive branch’s authority to do so.

References:

  1. https://finance.yahoo.com/student-loan-debt-how-much-should-biden-forgive-213848402.html

Canceling Debt Just Shifts the Burden

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Debt is never completely canceled or forgiven, someone (in the case of student loan debt, it would be taxpayers) always pays the debt or incurs the burden.

About 43 million people, according to CNN.com, are waiting to find out if President Joe Biden will wipe away all or part of their federal student loan debt.

President Biden is “taking a hard look” at canceling or forgiving hundreds of billions of dollars in federal student loan debt — a decision his advisers believe would be “a complete disaster” for the Democratic Party in the midterms.

The White House floated loan forgiveness of $10,000 per student borrower. The debt forgiveness would add $245 billion to federal government debt, according to the Committee for a Responsible Federal Budget.

Digging deeper, it appears that the top 40 percent of wage earners hold the majority of student debt and would be the major benefactors of this Presidential Executive Order. Of student-debt holders between the ages of 25 and 40, the top 40 percent bears half of the total debt.

According to the IRS, if you borrow money and are legally obligated to repay a fixed or determinable amount at a future date, you have a debt. You may be personally liable for a debt.

If your debt is forgiven or discharged for less than the full amount you owe, the debt is considered canceled in the amount that you don’t have to pay.

In general, if you have cancellation of debt income because your debt is canceled, forgiven, or discharged for less than the amount you must pay, the amount of the canceled debt is taxable and you must report the canceled debt on your tax return for the year the cancellation occurs.

A majority Americans are opposed to blanket federal student loan debt forgiveness or cancellation. Because, it doesn’t seem fair to them if millions of student loans are forgiven, yet the money to pay the debt is going to have to come from somewhere, and it most likely will be on the backs of the middle class tax payers.

Many Americans made sacrifices so that they and their children could attend college and would not need student loans, largely because they sacrificed and saved enough money to help pay for college costs.

Additionally, many economists opine that you or the government simply cannot cancel debt, you can only move the obligation around. This simple economic principle seems completely loss on many Congressional politicians.

Debt cancellation — it’s a noble yet dangerous concept. Basically, the financial burden may not fall solely on the students with debt. Who would pay for it? Every U.S. taxpayer would pay for this relief. 

So the Executive Order wouldn’t really forgive or cancel debt. It would simply make every American obligated to pay this federal student loan debt they didn’t sign-up for or reap the benefits from.

In short, student loan debts that are forgiven do not go to “debt heaven”. The obligations will fall onto the backs of American taxpayers.

References:

  1. https://www.americanthinker.com/blog/2022/06/well_lend_them_more_money_to_pay_the_higher_tuitions.html
  2. https://www.irs.gov/taxtopics/tc431
  3. https://www.msn.com/en-us/news/us/heres-what-it-would-mean-to-these-americans-if-biden-canceled-student-loan-debt/ar-AAYBK7N?ocid=uxbndlbing
  4. https://www.forbes.com/sites/forbesfinancecouncil/2020/08/06/you-cant-cancel-debt—you-can-only-move-it-around/?sh=7fdfa9c64616

Major Definite Purpose

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“A man without a definite major purpose is as helpless as a ship without a compass.” – Napoleon Hill

Napoleon Hill emphasized in his book “Think and Grow Rich” that the first step of learning how to “Think and Grow Rich” is figuring out what you desire more than anything else – and then coming up with a plan to act on it.

Hill puts a great importance on individuals deciding on a definite major purpose. Yet, it’s not unheard of for people to get stuck on this first step.

In fact, the #1 question that most ask is: “How do I determine what my definite major purpose is? I just don’t know what it is I want to do!”

It is said widely that ninety-five percent of the people of the world drift through life aimlessly without definite purposes for their lives.

Psychological reason for having a definite purpose in life implies that one’s actions are determined by the thoughts of one’s mind. Therefore, if you deliberately hold your definite purpose in your mind with the expectation of it realization, this will permeate your subconscious mind to the point where it will automatically influence the actions needed to achieve your definite purpose.

Once you determine your definite purpose, make sure that it is well-defined. You must write it down and place it where you can see it as soon as you open your eyes in the morning and the last thing that you see before you close your eyes at night.

What is your Life’s Mission? What is the number one purpose in your life? Why are you here? What are the most important accomplishments you desire? And what are you willing to give in return for them? 

What one great thing would you dare to dream if you knew you could not fail, asks Brian Tracy?

“If you could be absolutely guaranteed of successfully achieving any goal, large or small, short term or long term, what one goal would it be?  Whatever you answer to this question, if you can write it down, you can probably achieve it.  From then on, the only question you should ask is, ‘How?’  The only real limit is how badly you want it and how long you are willing to work toward it.” Brian Tracy

Once you know your bigger purpose, it’s easier to figure out your next actions.  And, when you know your bigger purpose, it can help you funnel your time, talent, energy, and effort into something that really matters to you.

Definite Purpose:

If you cannot see the end of the journey, you cannot plot the course to that destination.

Thus, it’s essential to determine “The one goal that is most important to you at the moment. It is usually the one goal that will help you to achieve more of your other goals than anything else you can accomplish,” Tracy writes. In his, “6 Attributes of Your Major Definite Purpose,” Tracy writes:

  1. Your major definite purpose must be something that you personally really want, excites you and makes you happy.
  2. Your major definite purpose must be clear and specific.  You must be able to define it in words and must be able to write it down.
  3. Your major definite purpose must be measurable and quantifiable.
  4. Your major definite purpose must be both believable and achievable.
  5. Your major definite purpose should have a reasonable probability of success.
  6. Your major definite purpose must be in harmony with your other goals and aligned with your values.

“Decide now what you desire from life and what you have to give in return.”

To achieve success, you have know exactly what you want and what you are willing to give-up in return….success and achievement are a two-way street.

References:

  1. https://sourcesofinsight.com/major-definite-purpose/
  2. https://www.mavericonsulting.com/news/2018/12/14/what-is-definiteness-of-purpose-and-why-is-it-so-importantnbsp
  3. https://thinkandgrowrichinstitute.com/definite-major-purpose/

Since 1937, over 120 million copies of Think & Grow Rich have been sold, and it’s the #1 book most people who have successfully built wealth credit with their success.

First Day of Summer 2022

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The first day of summer in 2022 is Tuesday, June 21, in the Northern Hemisphere, at 5:14 a.m. EDT, on Tuesday, marks the 2022 summer solstice.

This is the precise moment when the North Pole tilts closest to the sun, making the sun appear at its highest point in the sky of the year.

At that moment on Tuesday, the sun will be directly above the Tropic of Cancer. That’s the farthest north the sun moves in the sky, which is why the days close to the solstice have the most daylight of the year for n the Northern Hemisphere.

The reason the Earth has solstices, equinoxes and seasons is because the Earth is tilted on its axis. According to Earthsky, Earth’s Northern and Southern Hemispheres trade places in receiving the sun’s light and warmth every six months as the Earth revolves around the sun.

Reference:

  1. https://www.yahoo.com/gma/summer-2022-begins-longest-day-213034087.html

The Greater Fool Theory

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“The greater fool theory states that the price of an object is determined not by its intrinsic value, but rather by irrational beliefs and expectations of market participants. As long as there is a greater fool around the corner willing to pay a higher price, the value will continue to rise,” — Ashwin Sanghi

The “greater fool theory” refers to the principle that one can make money by investing into overvalued assets and selling them for a profit later, because there will always be someone else, “the greater fool”, who will come along and pay a higher price for the assets.

Billionaire Microsoft co-founder and investor Bill Gates has dismissed investments in cryptocurrencies, such as Bitcoin, and non-fungible tokens (NTFS). He opined that the digital assets market is largely driven by rampant speculation, greed and the greater fool theory.

Gates stated that the phenomenon of cryptocurrencies and non-fungible tokens as something that’s “100% based on greater fool theory,” since there will always be other speculators willing to pay more for assets.

Gates said he doesn’t own any crypto because he prefers investing in assets with determinable intrinsic value (value that is justified by facts) or “things that have valuable output.”

Thus without having a determinable intrinsic value, — a value that is justified by “facts”; such as assets, liabilities, earnings, dividends and other definite values — investing in cryptocurrency and NTFs is purely speculative by investors.

In the past, intrinsic value was equated to a company’s “book value”. Subsequently, a new concept was developed; the intrinsic value was determined by the earning power or the present value of the discounted future cash flow of a company.

Regarding intrinsic value: “To use a homely simile, it is quite possible to decide by inspection that a woman is old enough to vote without knowing her age or that a man is heavier than he should be without knowing his exact weight..” — Security Analysis by Benjamin Graham, David Dodd, Warren Buffet.

According to Corporate Finance Institute, the best way to avoid being a “Greater Fool” is to:

  • Do not blindly follow the herd, paying higher and higher prices for something without any good reason.
  • Do your research and follow a plan.
  • Adopt a long-term strategy for investments to avoid bubbles.
  • Diversify your portfolio.
  • Control your emotion of greed and resist the temptation to try to make big money within a short period of time.
  • Understand that there is no sure thing in the market, not even continual price inflation.

References:

  1. https://decrypt.co/102973/bill-gates-crypto-and-nfts-100-based-on-greater-fool-theory
  2. https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/greater-fool-theory/
  3. https://medium.com/the-peanut/the-concept-of-intrinsic-value-in-security-analysis-baa26ed1d42a

Recession and the U.S. Economy

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There is always a recession in the future. The reality is that the U.S. economy could be in a recession now.

Inflation is too high and interest rate adjustments are required, says Esther George, Kansas City Federal Reserve President. She sees consumers taking actions to combat inflation and those actions, such as not buying appetizers while dining out, are apparent to the Federal Reserve. Thus, the economic data shows that there are already signs of a pullback in consumer spending…just look at Walmart, Target and Dollar Tree sales and earnings.

There is always a chance of a recession in the future, no matter what the current economic data look like or current consumer spending is doing. The question of whether the economy slips into a recession is basically a “not if, but when“ proposition.

It’s become obvious that a recession will come to the United States economy in the future, but the essential question is when. It is important to keep in mind that recessions are a normal and unavoidable part of the economic business cycle.

A recession is a significant decline in economic activity that lasts for months or even years, according to Forbes. Experts declare a recession when a nation’s economy experiences negative gross domestic product (GDP), rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time.

The National Bureau of Economic Research (NBER) generally defines the starting and ending dates of U.S. economic recessions. NBER’s definition of a recession is “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”

The reality is that the U.S. economy could be in a recession now.

The definition of a recession is two consecutive quarters of negative gross domestic product growth. First-quarter GDP decreased at an annual rate of 1.4%. Should that happen in the second quarter, that would technically place the economy in recession.

Recessions usually come from demand weakness, but supply problems can also trigger a downturn.

Consumer demand for goods and services continues to be strong, according to the Federal Reserve. Consumers have plenty of money, thanks to past earnings, fiscal stimulus payments and extra unemployment insurance. They have paid down their credit card balances. Even though they also increased their car loans outstanding as they upgraded their rides, their general condition is good. Employment will increase thanks to the spending, reinforcing the income gains that enable expenditures. Supply restraints are fueling current accelerating inflation.

The economy reacts with a time lag of about one year, plus or minus.

The greatest recession risk in the near term is that the Federal Reserve realizes that much of the recent decades high inflation is long-lasting rather than transitory. They will then ‘hit the brakes’ to control inflation by raising interest rates. Because of the time lag, the Fed may decide to raise interest rates faster, triggering a recession.

“Inflation is worst than a recession, and inflation will take us into a recession,” states Liz Young, SoFi Head of Investment Strategy.

References:

  1. https://www.forbes.com/sites/billconerly/2021/11/02/no-recession-in-2022-but-watch-out-in-2023/https://www.forbes.com/sites/billconerly/2021/11/02/no-recession-in-2022-but-watch-out-in-2023/
  2. https://247wallst.com/investing/2022/05/19/goldman-sachs-has-6-strong-buy-dividend-stocks-that-can-weather-a-certain-coming-recession/
  3. https://www.forbes.com/advisor/investing/what-is-a-recession/

Juneteenth

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June 19 marks Juneteenth, a federal holiday acknowledging the day in 1865 that slaves in Texas learned of the Emancipation Proclamation

Juneteenth – short for ‘June nineteenth’ – is a celebration marking the moment in 1865 when enslaved black people in Galveston, Texas, found out they were freed – more than two years after President Abraham Lincoln’s Emancipation Proclamation.

On 19 June 1865, Union troops arrived in Galveston Bay, Texas, to inform enslaved African-Americans of their freedom and to tell them the Civil War had ended.

Led by Union Major General Gordon Granger, the Union troops took control of the state and announced that the 250,000 enslaved black people in the state were free by executive decree. Gordon informed the residents that slavery would no longer be tolerated and that all enslaved people were now free.

Enslaved people would henceforth be treated as hired workers if they chose to remain on the plantations, according to the National Museum of African American History and Culture.

When General Granger shared the news in Texas about the Emancipation Proclamation, slaves in the remaining rebel state were unaware that President Abraham Lincoln had issued the 1863 proclamation that freed slaves in Confederate states. 

It’s important to note that slavery wasn’t actually abolished with the Emancipation Proclamation — which was passed on Jan. 1, 1863. Slavery was formally abolished through the nation’s 13th amendment to the U.S. Constitution, which was ratified on Dec. 6, 1865.

Yet, the end of slavery did not mean equality for black Americans. “The ending of slavery in a formal sense turned into less official forms of abuse of African-Americans,” says Lucy Worsley. “Racial segregation became a fact of life in many formerly Confederate states, as did using the formerly enslaved as poorly paid labour. Indeed, ‘slavery’ was still possible – in all but name.”

A collection of statutes known as the Jim Crow laws forced black people to live, work, and play separately. The laws existed for about 100 years, from the post-Civil War era, through two World Wars, until the 1950s.

Juneteenth, a National Holiday

U.S. stock markets will observe Juneteenth. While the holiday technically fell on Sunday, June 19, the New York Stock Exchange and the Nasdaq will be closed in observance on Monday. The markets will resume normal hours on Tuesday, June 21, with the regular session starting at 9:30 a.m. Eastern.

President Biden signed the Juneteenth National Independence Day Act on Thursday 17 June 2021, recognizing Juneteenth as a national holiday.

“Great nations don’t ignore their most painful moments,” President Biden said. “We come to terms with the mistakes we made. And remembering those moments, we begin to heal and grow stronger.”

References:

  1. https://www.historyextra.com/period/modern/juneteenth-history-facts-how-to-celebrate-meaning/
  2. https://www.foxnews.com/lifestyle/juneteenth-what-why-celebrate.amp

A Purpose Driven Life

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“Cherish your visions and your dreams as they are the children of your soul, the blueprints of your ultimate achievements.” – Napoleon Hill

What’s the purpose of your life? Or to be more specific, what is it that adds meaning and satisfaction to life? What is it that gives us a sense of purpose?

Like many people, you might feel that you’re simply existing in life, going through the motions without understanding what it all means. 

In living the “a purpose driven life”, you’ll start to find meaning in every moment of your life. You’ll learn to deepen your love for yourself and others, find the unique purpose you were made for, and prepare yourself for a meaningful life.

Jack Hawley writes in Reawakening the Spirit in Work, “Our life direction is about moving into the vacant upstairs flat.”

Purpose is that home within, that place where our talents, values and service to others-drive reside. It’s there all the time, waiting for your arrival. You may have been too busy “living your life downstairs” to even notice.

Successful investors and wealth builders tend to be purpose driven. They tend to have a clear vision about what to focus on and a plan on how to accomplish their wealth building and investment goals.

They have deadlines and milestones, and stick to them, holding themselves accountable for their progress or lack of progress. They focus on the prize and literally speak their reality into existence. Once they say they will do something, they do it!

People aren’t successful by chance.

People choose to be successful and then make it happen by first having a vision and written goals. They don’t ask for permission and they don’t search for acceptance from others. They win by not getting angry or making excuses. They clearly know what they want and take responsibility for for their progress or lack of progress.

No matter who you are or what you do, within, there is a purpose for life. Life may throw you heartaches and failures but your purpose drives you to persist, improve, learn and grow.

You can strive to “be better/do better”, which means to always try to be better day after day. It may only be a small percentage of improvement, but small improvements over time can compound into big changes.

Living a purpose driven life may help you to live longer, as research suggests. Scientists found that those individuals who have a purpose in life had a reduced mortality risk. In short, finding meaning in one’s life promotes positive aging and longevity.

Why is so important to have a sense of purpose?

Feeling that you’re making a difference, that what you’re doing has a meaning, can have a great impact on your life.

Having a sense of purpose can make all the difference in your life! It can help you to get up each morning, feeling excited about the upcoming day. Even more so, it can help you to confront difficulties and overcome even the biggest obstacles that lie in your path.

Personal Mission Statement

Here’s a quick way to get a sense of your life’s purpose.

By reviewing the kind of person you are and the abilities that come naturally to you, even if they got you into trouble in the past, you can gain insight into your life purpose, says psychotherapist Tina Tessina, Ph.D., author of The Ten Smartest Decisions a Woman Can Make after Forty. Do so by writing down a list of descriptions about yourself in each of the following categories:

Personal qualities (e.g., friendly, intellectual, a good communicator)

Your talents (e.g., painting, motivating people by public speaking, athletics, mentoring)

The circumstances that tend to repeat in your life (e.g., do you wind up teaching others, listening to people’s problems, working with children or technology?)

Your desires (e.g., traveling, cleaning up the environment, running for political office). If you’re doing something you’re not interested in or passionate about, you’re usually doing it with a bad attitude, a lazy demeanor, or doing the task grudgingly.

Then take the answer that is most important to you in each category and complete the following sentence:

I ________________ (your name) am designed to be a ________________ (insert personal quality) who can ________________ (insert talent) and I find myself ________________ (fill in recurring patterns or circumstances) often, because I am supposed to ________________ (desire).

Example: 
I, John Smith, (your name) am designed to be a good communicator (insert personal quality) who can motivate people through my experiences and expertise (insert talent) and I often find myself listening to people’s problems (fill in recurring patterns or circumstances) because I am supposed to operate an executive coaching company and improve their circumstances (desire).

References:

  1. https://www.success.com/8-principles-of-purpose-driven-leadership/
  2. https://www.planetofsuccess.com/blog/2016/living-a-purpose-driven-life-11-effective-tips/
  3. https://www.lifeadvancer.com/purpose-driven-life/
  4. https://www.success.com/answer-6-questions-to-reveal-your-life-purpose/

Credit Report and Score, and Credit Cards

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Credit is one of the most vital factors in building wealth and achieving financial freedom.

Building good credit is one of the first steps in creating an infrastructure for achieving financial freedom. Your largest purchases are almost always made on credit. People with good or excellent credit save tens of thousands of dollars on these purchases through lower interest rates and better terms.

There are two main components to your credit: your credit report and your credit score.

A good or excellent credit score can save you hundred of thousands of dollars in interest charges. Since if you have a good or excellent credit, it makes you less risky to lenders, meaning they can offer you a better or lower interest rate on loans such as mortgage loans and automobile loans.

Lenders charge you more or less for a loan depending on you score and credit history, which signifies how safe or risky you are.

Once a year, by law, you’re allowed to obtained a copy of your credit report free from the major credit bureaus: Experian, Equifax and TransUnion.

It’s important to plan now to monitor, manage and improve your credit before you need the auto or mortgage loan three to five years in the future.

And, never forget that one of the most important factors in improving your credit is getting out of debt and paying your bills on time.

Credit Cards

There has been a great proliferation of credit cards and people owning multiple credit cards over the past decade and more. And, the competition for consumers among competing credit card companies has become fierce.

Credit cards provide convenience and flexibility. And if you pay your credit card bill balance in full and on time each month, they can be utilized as a free short -term loan. They can help you track your spending much more easily than cash and you can download your transaction history.

Additionally, there are many benefits and rewards associated with credit cards such as cash back and travel rewards. But beware, most of the best rewards credit cards have annual fees. Only if you spend thousands of dollars per month on your credit card, the annual fee for the rewards might be worth it.

If you’re booking travel or eating out, use a travel card to maximize rewards, writes Sethi. For everything else, use a cash back card.

If you don’t completely pay off your credit card bill balance each month, you’ll incurred an enormous amount of interest at an high annual percentage rate (APR) that compounds.

It’s very easy to overuse and overspend with credit cards and find yourself in debt. One of the biggest problems with credit cards is the hidden cost of using them, says Ramit Sethi, “I Will Teach You to be Rich”. Many Americans have over spent and carry large credit card balances. The average credit card debt in the US in 2021, was $5,525, per Experian’s report. This was nearly 7% lower than the $5,897 in average credit card debt that was recorded in the same report in 2020.

To maximize the credit card benefits like cash-back, gift cards, air miles, discounts at the gas pump, or other rewards. And perks like free roadside assistance, free car rental insurance, or a free credit score and minimize the cost of credit cards, Sethi recommends:

  1. Pay off your credit card bill balance monthly. The single most important thing you can do to improve your credit score is to pay your bills on time. You’ll save thousands of dollars. If you miss one payment on your credit card, your credit score may drop, your APR can increase, you’ll be charged a late fee, and your late fee can trigger a rate increase on your other credit cards.
  2. Try to get fees on your credit card waived. A month before your new annual fee kicks in, call your credit card company and ask if they will waive the fee.
  3. Negotiate a lower APR. Call your credit card company and ask them to lower your APR. If they ask why, tell them that you’ve been diligently paying your bill in full on time for the last several years and there are a number of credit cards offering better rates.
  4. Keep your main cards for a long time and keep them active. Lenders like to see a long history of credit. Thus, the long you hold an account, the more valuable it is for your credit score.
  5. Get more credit. Do this only if you have no debt and you consider yourself financially responsible. You obtain more credit to improve your credit utilization rate, which is simply how much you owe divided by your available credit. Lower is preferred because lenders don’t want you regularly spending all the credit you have available. It’s too likely you’ll default and not pay them back.
  6. Use credit card’s secret perks. If you have very good credit, call your credit cards companies and other lenders once a year and ask them what advantages you’re eligible to receive. Often they can waive fees, extend credit and give you private promotions.

Call your credit card company and ask them to send you a full list of all their rewards.

References:

  1. https://www.iwillteachyoutoberich.com
  2. https://lanterncredit.com/credit-cards/average-credit-card-debt
  3. https://www.creditwww.com/Edu/credit-card-costs-and-benefits/