How to Beat Credit Card

Companies at Their Own Game:

The Bi-weekly Loan Payment Strategy
How Basic Math Can Set You Free from Debt

Americas Credit Card Problem

Nothing will hold your life back like credit card debt. Its sneaky, pernicious, and unforgiving.
The bills keep coming whether you have the money for them or not, and interest never
stops accruing until your balance hits zero. It doesnt take long until you owe more than you
ever intended to purchase, and many people find themselves struggling to meet a minimum
payment from one month to the next.
Did you know that the average US
households credit card debt stands at
$15,185? Thats an especially disturbing
number when you consider that the median
annual income for Americans is only
$50,000, meaning that many single-income
American households could owe nearly a
third of their income (or more) to credit
card companies.
In fact, credit cards are the third largest
source of debt for consumers, just behind
student and home loans. In total, American
consumers currently owe $849.8 billion on
their credit cards alone!
Nevertheless, people continue to open new
credit card accounts. For most, it begins
innocently enough. Everyone hits hard
times when money gets tight, and in those moments, the chance to charge a purchase or
payment can seem too tempting to pass up. Ill have more money again in a few months,
we tell ourselves, so the decision to use a card in the short-term seems justified.
But as the old saying goes, time and money are the same thing. What seems like an easy
payoff now wont feel nearly as simple or fun down the road. Unexpected expenses or pay
cuts can arise, and even if your income does see a boost, youll be less inclined to allocate
extra funds to paying off old debt in full. In the
meantime, your once-low
interest rate sees a sudden hike or your
maximum credit cap gets lifted, enticing
you to make even more charges. Before
long and it happens fast enough to catch
millions of people off guard youre
drowning in debt.
This is how credit card companies make
money. It happens to responsible, rational,
and intelligent people just like you every day. Theres no shame in finding yourself in debt,
but its the action you take now in response that counts.
Credit cards have their place in our world. Handled delicately, they can help out in true
emergencies and even boost your credit score. But debt doesnt have a place in anyones
life. Ralph Waldo Emerson once wrote that a man in debt is so far a slave. In this paper,
well help you understand the specific complications of credit card debt and show you how
you can set yourself free with a proactive plan designed to pay down principal while also
eliminating interest charges at a much faster rate.
46.7%
Percentage of US
households with an
existing credit card balance
Page 1 | US Equity Advantage | Feb. 2014 | How to Beat Credit Card Companies at Their Own Game
Total National Credit Card Debt (Year by Year)
According to the US Federal Reserve, the total credit card
debt in 1967 was $1.4 billion. That number had jumped to
$39 billion by 1977, and then again to $169 billion by 1987.
Since the late 80s, our national credit card debt has
quintupled.
Heres a look at the exponential trend in credit card debt
over just the past few years. Note that there was a small
decline following the economic downturn in 2008/2009,
but the numbers are climbing yet again (with even greater
growth expected for year-end 2013 and 2014).
Its astonishing to think that Americans created a nearly
$1 trillion quagmire of crippling debt for themselves in just
about 45 years, but perhaps its not such a surprise.
Unlike some other types of loans, credit cards are
structured with certain key characteristics that make them
especially perilous for consumers. In the pages ahead,
well look at some of those particular issues and how you
can outsmart them with a simple strategy.
$10,000+
The current credit card balance for more than 15% of Americans
Total Credit Card Debt
2002 - $769 billion
2003 - $791 billion
2004 - $823 billion
2005 - $849 billion
2006 - $902 billion
2007 - $972 billion
2008 - $1.005 trillion
2009 - $917 billion
2010: - $840 billion
2011: - $842.5 billion
2012: - $845.8 billion
Page 2 | US Equity Advantage | Feb. 2014 | How to Beat Credit Card Companies at Their Own Game
The Tricky Thing About Credit Cards
Credit cards are like quicksand. The deeper you get in, the harder it is to get out. But you
probably already know that from personal experience. Most people have brushed up against
nasty credit card accrual at one point or another, and it can strike as fast as lightning. How
does that happen? One word: interest.
Another Day, Another Charge
Why Annual Percentage Rates (APRs) are Misleading
Too many people borrow money on a credit card without really understanding how interest
works... and the credit card companies count on that. To break it down for you, lets start
with two basic terms: principal and compound interest.
Principal refers to the actual dollar amount you charge on your credit card.
Compound interest is the amount the lender charges you for the use of their credit line. The
interest is assessed as a percentage of your balance and then added to the total. The next
interest charge is then assessed against this new, higher balance... and thats where credit
cards get tricky.
To illustrate the basic concept,
well use easy, even numbers.
Lets say you borrow $1,000 in
principal with an interest rate of
10% every month. After the first
month, youll be charged $100 in
interest, so your new balance is
$1,100. After the second month,
youll be charged $110 in interest,
and now you owe a total of $1,210.
Its easy to see how quickly debt
can get out of control.
Credit card companies have to
tell you the approximate interest
theyre going to charge against your principal, and they
usually express that as an Annual Percentage Rate (APR). Thats somewhat misleading,
though, because most lenders actually calculate interest daily. Lets look at how that works:
Suppose you get a new credit card and charge $10,000 on it with 13% APR (which works
out to a daily compounded interest rate of roughly 0.036%). That means youd be charged
$3.60 in interest on the first day, for a new balance of $10,003.60 by Day 2. This continues
each and every day. In just five days time, youve already added around $15 in interest to
your balance, and that number will grow exponentially every day to come. You can imagine
the effect that has over the course of weeks, months, and even years.
As youll see in the latter part of this paper, the most effective strategy for eliminating debt
is one that beats the credit card companies at their own game. By acting sooner than later
and avoiding the trap of monthly payments, you can steadily chip away at the lenders
ability to compound your interest. But daily compounding isnt the only problem with credit
cards.
$0
$640
$1,280
$1,920
$2,560
$3,200
1 2 3 4 5 6 7 8 9 10 11 12
Interest Total Owed
Page 3 | US Equity Advantage | Feb. 2014 | How to Beat Credit Card Companies at Their Own Game
Low Interest Rates Dont Always Stay Locked
Credit companies are masterful marketers. They have a lot of bait in their box for reeling in
new customers. One of their most common tools is a low introductory interest rate
(emphasis on introductory).
At some point, youve probably gotten a
letter in the mail informing you that
youve been pre-approved for a new
credit card with an incredibly low interest
rate, sometimes as little as 0% APR. But
interest rates dont stay low forever.
As weve seen, credit cards are designed
to substantially increase your balance
over a short period of time. When that
inevitably happens, your lender is apt to
hike your interest rate, leading to even
greater balances in an even shorter
timeframe. Some cards have set expiration dates on their introductory APRs, and if you miss
a payment or max out your card, you can expect your rate to jump even higher.
13.9%
Percentage of Americans disposable income spent on credit card
payments
Your Credit Score Stays With You
Lenders report negative activity on your account to the major credit rating bureaus. So
when you miss a payment or exceed your credit limit, its not just your interest rate that gets
affected your credit score can quickly plummet, too. Negative activity generally stays on
your credit report for seven years, meaning that your ability to get a house or car will be
severely limited for a long time to come. You may even find yourself turned down for leases
and other rental applications, or otherwise paying higher rental and interest rates because
of your diminished credit score.
But even if you make every payment on
time, simply carrying a large balance on
your card will adversely impact your
credit report. Constantly making only
the minimum payment every month
can take a toll too. (Besides, minimum
payments go almost entirely to interest
alone, so it can take decades to pay off
a card that way.) Some financial experts
recommend never exceeding more than 20% of your credit limit for that reason.
Few things can wreak havoc on your financial life like a poor credit score. Thats why its so
important to stand strong against the threat of credit card debt, and to take action against
your mounting obligations before its too late.
14.2%
The amount of household income
that families actually spend to pay
down their debts
Page 4 | US Equity Advantage | Feb. 2014 | How to Beat Credit Card Companies at Their Own Game
Why Focus on Credit Cards?
5 Great Reasons to Start with Credit Cards First
If youre like most people, credit cards arent the only debts you still owe. Houses, cars, and
college degrees are all commonly obtained on credit, and those often cost more than
whatever your Visa balance is. So when you have a long list of loans you could be making
payments on, why should you focus on paying off credit cards?
Well give you five good reasons.
You Have to Start Somewhere
First of all, you need to pay off something. The least effective strategy you could
adopt is to just keep making small monthly payments on all of your loans. Thats a
sure way to live the rest of your life in debt. True freedom means eventually
ridding yourself of all the financial obligations that are holding you down, but it
takes time. Remember, debt-free living is a marathon not a sprint.
Financial Surprises are the Worst Surprises
Unlike other loans, you probably never planned to have credit card debt. People
usually take out car loans or mortgages as part of a long-term financial plan, or at
the very least go into them with the expectation that the loan will be with them
for a while. But credit card debt tends to sneak up by surprise. Thats a great
reason to get rid of it first. Zap your credit card bills and get your finances back
on track.
They Cant Compound Interest on Debt You Dont Owe
Remember that APRs can vary wildly over time. Compared to other types of
loans, credit cards are more likely to see a sudden spike in your interest rate.
Sometimes those hikes go unnoticed by the consumer simply because theyre too
busy to carefully read every notice they get in the mail. The faster you get rid of
credit card debt, the faster you shut down those out-of-control, daily-
compounded interest rates.
Low Credit Card Balance = High Credit Report Score
Relief from credit card debt also has the advantage of immediate impact.
Remember that your balance-to-credit-limit ratio has a direct and profound
impact on your credit score. Every time you bring down your credit card balance,
youre helping to improve your credit report. And when there are no more
MasterCard bills in the mailbox, youll never have to worry about accidentally
missing a due date. Paying off your card is probably the best step you can take to
protect your credit score.
Because You Can
Finally, it makes sense to focus first on paying off your credit cards simply
because you can pay them off. In most cases, its a much more attainable goal
than, say, paying off your house. Focus on eliminating 100% of your credit card
debt, get it out of your life, and then youll have more freedom to start paying
down your other debt.
5
4
3
2
1
Page 5 | US Equity Advantage | Feb. 2014| How to Beat Credit Card Companies at Their Own Game
The Bi-weekly / Early Loan Payoff Strategy
A Commonsense, Simple-Math Solution for Faster Debt Elimination
Bi-weekly / Early Loan Payoff is a novel approach to debt elimination that simply involves
dividing a monthly payment in half and paying it every two weeks instead. Its an idea so
simple and mathematically sensible that its almost surprising that it hasnt always worked
that way. But, unfortunately for the credit card companies, people are starting to catch on.
Heres how it works. Suppose your monthly Visa payment is $100. Instead of paying $100 at
the end of every month, you pay $50 once every two weeks instead. How can that make a
difference? Actually, its just good clean math:
But heres the only catch: you have to be extremely disciplined about making your
payments bi-weekly every single time, without fail. You also have to call your lender after
each bi-weekly payment and make sure that theyre applying it to your principal and not
to future payments (theyll often do the latter by default, which is considerably less
helpful to your plight).
Unfortunately, most people dont have the time or dedication to see the strategy through on
their own. If everyone were that diligent when it comes to credit card payments, America
probably wouldnt have $849.8 billion dollars in credit card debt. The reality is that most
people will cave into the temptation to stretch two weeks into three or otherwise slip up
and forget altogether. True freedom from debt requires a bold decision to do what it takes
to get rid of the debt once and for all.
Fortunately, bi-weekly / early loan payoff providers like US Equity Advantage have
simple plans that get people on the fast track and keep them there until their debt hits
zero.
Every time you make a payment, theres less principal for your lender to charge
interest against. When you make a payment every two weeks, your principal
grows incrementally smaller twice a month instead of just once. Now, instead
of your credit card exponentially increasing your balance, youre exponentially
reducing your debt. Its an incredibly sensible way to beat the credit card
companies at their own game.
Heres another dirty little secret: Because there are 52 weeks in a year but only
12 months, paying bi-weekly will result in 26 payments (52 2) instead of 24
(12 x 2). So youre technically making an extra months worth of payments, but
because its spread out bi-weekly over the course of the year, youll never feel
the sting... but your credit card company will.
Page 6 | US Equity Advantage | Feb. 2014 | How to Beat Credit Card Companies at Their Own Game
US Equity Advantages AutoPayPlus is one such program. It makes peoples bi-weekly,
weekly, bi-monthly or monthly payments for them on a regular schedule and then follows
up with the credit card company after each payment to ensure that the funds are applied
toward principal rather than future payments.
Once a consumer signs up with AutoPayPlus, they can take their mind off their debt,
knowing that its steadily being paid off with an ever-shrinking interest and balance. And
the programs PaymentPlus Guarantee makes sure that the consumer never faces a
penalty for missed or late payments.
A one-time fee of $399 gives consumers lifetime membership in the AutoPayPlus program
for use with an unlimited number of loans, whether its a credit card, student loan,
mortgage, etc. Its even available for making utility payments and other non-interest-
accruing obligations. And because US Equity Advantage doesnt require an upfront
payment, the $399 can be deducted over time from the initial payments made toward credit
card principal. Its an affordable and effective way to ensure 100% elimination of credit card
debt.
Unlike some other do-it-yourself methods, AutoPayPlus offers:
"When you pay a half a payment every two weeks, keep in mind that
there are 26 two-week periods in a year. You're paying 26 half
payments. Twenty-six halves equal 13 wholes. You're paying an extra
payment each year. That's why your [loan] pays off eight years early."

Dave Ramsey, The Dave Ramsey Show

Guidance for a surefire,
comprehensive payment plan
Faster payoff for your entire loan
Smaller interest charges (many
people literally save thousands of
dollars in total interest accrued)
Every payment submitted on time,
guaranteed
Consistent follow-through with the
lender to make sure theyre putting
your payments where they count
Multilingual customer service
Cancellation at any time with no
cancellation fee
Customizable payment plans to
match your particular ability and
needs
Its an easy way to put the Bi-weekly Early Loan Payoff Strategy to work for you.
Bi-weekly debt elimination is a proven approach that has been embraced by everyone
from Dave Ramsey and Clark Howard to David Bach and Suze Orman.
Stop paying untold thousands in interest charges. Make the decision to get rid of all your
credit card debt once and for all. Enroll in AutoPayPlus and start changing your life for the
better... today.
Page 7 | US Equity Advantage | Feb. 2014 | How to Beat Credit Card Companies at Their Own Game
Debts Death Begins With You
Credit cards havent been with us long, but
in the half-century or so since their
inception, theyve managed to drag millions
of Americans into the deep trenches of
suffocating debt.
If youve suddenly found yourself with an
unexpected and seemingly insurmountable
credit card balance on your shoulders, you
arent alone. It happens to people all around
the world every day.
But credit cards dont have to control your life.
Get out from under that boulder and start
chipping away. With a smart strategy in mind
and a little support to help you stick to it, you
can leave all your debt behind. All it takes is a
decision to act now.
Bi-weekly Loan Payments is a straightforward
concept, but its simplicity is what makes it work
so well. With just a little bit of clever calendar-
setting, this effective strategy puts the rules of
basic math to work in your favor. Beat the
credit card companies at their own game and
change your life without changing your lifestyle.
When you sign up for AutoPayPlus from US
Equity Advantage, you take the critical first step
toward freedom. AutoPayPlus does all the rest,
managing your early loan payoff so that you
never miss a payment and never get off track. It
virtually guarantees that your debt will
disappear in just a matter of time, and all you
have to do is split the payment youre already
making in half.
Who knew that simple math could
set you free?
14.2%
The amount of household
income that families
actually spend to pay
down their debts
Page 8 | US Equity Advantage | Feb. 2014 | How to Beat Credit Card Companies at Their Own Game
About US Equity Advantage
Founded in Orlando, Fla. in 2003, US Equity Advantage (USEA) is the industry leader in bi-
weekly and early loan payoff services, from home mortgage and student loans to credit
cards, automobiles, and more. USEAs customers enroll as lifelong members in order to
strategically eliminate an unlimited number of loans or other debts. Members receive
superior service with a flexible debt payment plan that can dramatically reduce interest
charges and rapidly pay down principal for faster debt elimination.
US Equity Advantage is the exclusive provider of the life-changing AutoPayPlus
service, which administers members payments for them, guaranteeing that they never
miss a payment or get off track. To date, USEA has safely and securely transmitted more
than $700 million on its members behalves. The company is committed to helping
consumers reduce their debt, save for the future, and reach their financial objectives. To
date, USEA has worked with hundreds of thousands of members to do just that.
To try US Equitys commonsense, simple-math approach, sample the USEA Biweekly Loan
Calculator for free online.
For additional information, visit www.usequityadvantage.com, call 800.894.5000, or find
USEA on Facebook or Twitter (@AccelerateLoans).
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Page 9 | US Equity Advantage | Feb. 2014 | How to Beat Credit Card Companies at Their Own Game