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The face and language of using and operating credit cards is about to change worldwide. Australia’s National Credit Card debt has reached $44 billion and in the USA recent reports indicate $952 billion is owed on credit cards. The Federal Government wants us to save for our future but with only one in four credit card holders paying off their credit card each month and yet more credit cards being pushed by lenders, we need a solution to assist consumers operate their credit cards more effectively and pay off their debt faster. Schreditcard.com will show consumers and in fact credit card providers that there is a better way to pay off your credit card by changing your banking habits. Just as deregulation of the banks years ago resulted in more competition, some non bank lenders educated consumers how to pay off their mortgage faster by salary crediting and using their income more wisely. Now Schreditcard.com will do the same by teaching credit card holders to salary credit into their credit card, therefore reducing up to 18%+ in interest. Traditionally we are educated to pay off our credit card at the end of each month when it is due. If we reverse this and pay our wages / salary direct into our credit card we will fact reduce our balance by that amount immediately, alleviating as much as 18+% interest calculated daily. Why have your pay sit in low interest savings accounts getting around 2% in interest when you can SAVE up to 20% on your debt. Developer of the schreditcard Peter Kates said “Consumers would normally pay their credit card when the statement tells us because that is the way we are conditioned” “ Most card holders pay the minimum amount and reason with themselves that they will find some extra funds next month somehow magically to pay a large chunk of the debt, but with only one in four credit card holders doing so we need a new look at this problem”. schreditcard.com will demonstrate on their website “ How to pay Off your credit card in 90 days” Even while you are still using it! Study the example of a card holder on income of $45,000 pa gross with a $5,000 credit card balance , pay it off in 90 days where they are $540 in the black and now earning interest.... not paying it! Mr Kates a Wollongong based Finance Broker has worked closely with home loan applicants who were finding it difficult obtaining a loan because of too much credit card debt. Solution ... Focus on paying off one credit card at a time and the schreditcard was born. Mr Kates suggested that the banks and credit card providers better plan to be inundated with enquiries from consumers wanting to change their credit card into a schreditcard. The banks won’t like this for obvious reasons as credit card debt is a huge profit maker. Mr Kates said “ This is an extremely simple solution to a massive worldwide problem that up until now the only other solutions was to consolidate your credit card into a Personal loan or mortgage. This is a real positive step to rid yourself of credit card debt and start a savings plan instead”. Mr Kates suggested in the future all credit cards will need to operate as a schreditcard. “I think minimum repayments should be banned, it is only in the banks interest to have this arrangement” according to Mr Kates. “In fact all credit card statements should show the result of minimum repayments displayed as a graph on all credit card statements”. Mr Kates is expecting that the Federal Government will have an interest in the schreditcard because “any process or product that can alleviate our national consumer debt and put people in a position where they can save for their future must be considered positive” he said. Footnote: The schreditcard was a Federal Government 20/ 20 summit submission. Peter Kates |