GOOD DEBT V/S BAD DEBT

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Most of us use credit cards.

While these provide a lot of benefits, there are also demerits, some being :

- High interest (35-40%)

- Leads to impulsive buying

- High annual & late charges

But do you know, you can use credit cards to generate income. Shocked?

Let’s find out how can you convert this BAD debt into a GOOD debt.

Suppose you pay gross $1000/month for your fixed expenses in cash.

- An average settlement period for your card is 30-45 days.

- Stop paying it in cash instead pay it by your card.

- Deposit the cash in a short term financial instrument for the similar time period.

As the settlement period comes close, withdraw the money with interest you have earned.

- Settle the $1000 bill and keep the interest in your pocket.

- That interest is your income.

Understood what happened?

You used the credit card money for free and in return made income on it.

Additionally credit card companies also give you points, freebies, miles, etc. to use their cards.

- The wealthy use this loophole.

This is real leverage. This is GOOD DEBT.

Few points to be taken care of so as to not let it transform into BAD DEBT:

- Only spend the money that you have.

- Pay your dues in full and on time.

- Be fully aware of all the charges.

Comment below what you think about this loophole? Also RT it if you liked it.

Another source for pseudo-passive income is building your twitter and earning from it.

Want to know how the pros do it?
Click on the link https://gumroad.com/a/415700083/XFFpt