Credit Cards Can Help Prevent Your Financial Doomsday

Credit Cards Can Help Prevent Your Financial Doomsday!

by Deidre Shirley

Have you been scared out of your minds lately about the economy? People getting laid off, the possibility of tax increases, and no rock bottom in site? Well, you are not the only one. People are getting antsy talking about another Great Depression. Here's how you can help avoid any type of financial depression in your life:

First, apply for fixed low rate credit cards, preferably 4% or lower.

Second, use the money from the credit cards to open up a high-yield investment. No, were not talking about the stock market or other possible-loss scenarios. We're talking about government issued savings bonds or high-yield bank time CDs. The rates vary based on the amount you put in, but can be as high as 6.5%.

So let's say you invest $1,000 into a 5% savings bond for a year. You make $50, before the money is compounded. If the money is compounded daily, your yield would be higher.

If you got the money from a 0% interest rate card, your profit is $50. Now as long as the interest rate of the card is less than that of the account, your making dough.

Watch out for annual card fees, these will eat your profits. If a card has a yearly fee, call and ask if it can be averted. They will work with you. Its better than working against you.

Last, before hurrying and paying your credit card back, call and ask for an extension on the low interest rate. If they'll give it to you, you just made your self more time. And time is money in the world of interest.