How You Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line

Chapter 4. Avoid Problems That Hinder Maximum Profits

Credit cards can be great financial tools, rewarding us with low rates and nice perks when we use them wisely. But they can wreak tremendous financial and emotional havoc when used irresponsibly. There’s just no profit in paying a pile of bank interest or having your credit score lowered—or your confidence shaken—because of too many credit card bills.

I’ve had first-hand experience with the incredible stress that card debt can cause. By the time I finished my graduate studies at the University of Texas at Dallas, I owed about $45,000 on my credit cards. So this is a topic that’s near and dear to my heart.

Assuming that the interest rate was 18% and I sent in only the minimums, I’d have paid $67,115 ...