How to Navigate Credit Card Offers Wisely and Avoid Common Traps

Ralph Estep Jr.:
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Let me ask you something. Have you ever gotten sucked into a credit card offer that seemed too good to be true?

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You know, the one's promising mountains of cash back, free flights, or even points to last a lifetime. We've all been there, right?

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Well stick around because today we're diving deep into the world of credit card perks, separating the blessings from the burdens and making sure you're equipped to make wise choices that align with your values. This is a show you don't want to miss.

Ralph Estep Jr.:
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Hey everyone, and welcome back to this show where we tackle your financial questions from a place of faith.

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I'm so glad you decided to spend a few minutes with me today. We bring content just like this every day.

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So, I encourage you to subscribe and follow the show. Now before we jump in, a big thank you to everyone who tuned into yesterday's episode.

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We talked about overcoming the fear of retirement. It was a truly powerful conversation and I hope it provided some peace and clarity as you plan for your golden years and make sure you come back tomorrow.

Ralph Estep Jr.:
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Tomorrow we're gonna be tackling a topic that's close to my heart and that's explaining FDIC insurance, and how your accounts are protected.

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That those accounts that are in the bank. It's essential knowledge for every Christian steward. So, you don't want to miss that.

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Now today's topic is close to home for many of us. It's those credit cards. They could feel like a double edge sword, can't they?

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On the one hand, they offer convenience, they offer rewards and even a safety net in emergencies.

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On the other hand, they can lead to debt that can lead to deep stress and truly a sense of being trapped.

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As Christians, we're called to be wise stewards of the resources God has entrusted to us.

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So, let's look to the Bible. Specifically, let's talk about Proverbs chapter 22, verse 7, which reminds us this.

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"The rich rule over the poor, and the borrower is a slave to the lender."

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This verse isn't condemning credit cards outright, but it's a powerful reminder to approach a debt with caution and strive for financial freedom.

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So, the question is Ralph, how do we navigate the world of credit cards in a way that honors God and sets us up for financial success?

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Well, let's start by acknowledging the good. The truth is, credit cards, when used responsibly can offer some fantastic perks.

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Think cash back on everyday purchases. Travel rewards that can fund family vacations.

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And even purchase protection or extended warranties on the items you buy. There truly are some great things about credit cards, but here's the catch.

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And it's a big one folks. Those perks come at a cost. The truth is, credit card companies, aren't charities.

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They are not looking to give away the store, their businesses, and their goal is to make a profit.

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And they want to make a big profit. They do that by enticing us with attractive offers, hoping we'll overspend.

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I mean, that's the goal folks. They're hoping we carry a balance and they hope we've rack up mega interest charges.

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That is their goal. We need to be clear about that.

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So, how do we avoid falling into these traps? Well, here are some practical tips my friends.

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Number 1. This one is going to be difficult, but I stand by this a hundred percent and that is treat credit cards like debit cards. This is crucial.

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You should only spend money you actually have in the bank.

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If you can't afford to pay your credit card balance in full each month, it's a sign you're living beyond your means.

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In my practice, when I meet with people to do financial counseling, it amazes me how many people use that credit card when they don't have the money to pay that balance at the end of the month.

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Now, the truth is there are emergencies. There are things that happen from time to time and I get it. But that's another reason to build that emergency fund.

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So, let's look at number 2 and that's read the fine print. I know, I know. It's tempting to skim over those pages of tiny text. I've done it myself.

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How many people are going to sit there and read page after page of all these things, but trust me. It's essential.

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You've got to pay close attention to interest rates.

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You got to look at whether there's interest rates change, if you miss a payment or maybe they change after introductory period.

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You also have to look for annual fees and any other hidden charges. These things are all in that fine print. So, you've got to take time to read them.

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Number 3. Compare, compare, compare. Don't settle for the first credit card offer those lands in your mailbox.

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This is something you can shop around for, especially if you honor your credit and you have a good credit score.

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This is a great time to compare rates and rewards programs and choose a card that aligned with your spending habits and financial goals.

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You might look for a card that works for the areas where you spend money the most. If you're one that travels a lot, then you might look for travel perks.

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Number 4, negotiate. Did you know, you can often negotiate lower interest rates or waive annual fees?

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The truth is, folks, it doesn't hurt to ask. These credit card companies have bunch of people working in their retention where they're trying to keep you with their card.

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You can be polite, but firm and be prepared to walk away if you're not getting a fair deal.

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Number 5, beware of temptation. Trust me. I've fallen into this myself. Credit card companies are masters of temptation.

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They bombard us with shiny offers and make it incredibly easy to overspend.

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Set spending limits for yourself, track your purchases and resist the urge to impulse buy.

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As we talked about, if you don't have the money, then don't put it on the credit card.

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Remember friends, financial freedom is about so much more than just accumulating wealth.

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It's about living in alignment with our values. It's about being good stewards of God's blessings, and it's about experiencing the peace that comes from living within our means.

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Now, I want to leave you with a few actionable steps you can take today to start mastering your credit card usage.

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If you listen to my show, you know, I always want to give you things that you can take away.

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So, this is the first one, and that's pull out your credit card statements. Take a hard look at your spending habits.

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Are there areas where you can cut back?

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It amazes me just how many people never look at their statements, what those individual fees are in those charges.

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You've got to open that statement or go online and read it line by line because you will be amazed at how many things you miss.

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Number two, set a budget and stick to it. This is essential for anyone serious about getting their finances in order.

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A credit card isn't an excuse to go off your budget.

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You know, if you listen to my show, I talk about being on a budget and I say it here again, even when it comes to credit card perks, set a budget and stick to it.

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Number three, if you're struggling with credit card debt, reach out for help. You're not in this alone.

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There are many reputable Christian organizations that offer financial counseling and debt management services.

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You do not have to go through this alone. I did a show just a week ago about debt management and bankruptcy.

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And I encourage you to check it out if you haven't already.

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Well, that's all the time we have for today's episode. I hope you found it helpful and encouraging.

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Remember, managing your finances God's way can be a journey, but it's a journey worth taking.

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For more resources and to join our community of like-minded individuals, visit our website at askralphpodcast.com and don't forget to subscribe to the podcast and share this episode with anyone who might benefit from it.

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And as I always say, until next time, stay financially savvy, and God bless you abundantly.