The Secrets Behind Credit Cards

Assalamu Alaikum girlie! 🌸

"Earn up to 5% cash back on everyday purchases!"

"Earn a $200 statement credit when you spend $1,000 in the first 90 days."

"Travel more with 3x points on travel and dining!"

Credit cards are a great way to spark an emotional debate. For some, it’s the core of their identity and for others, it’s the worst piece of plastic ever introduced to mankind.

Are credit cards really the secret ingredient to financial freedom? Or are they a scam?

Here’s what I’ve got for you today:

• How do Credit Cards Really Work?

• The Secrets Behind Credit Cards

• What Next?

How Do Credit Cards Work?

A credit card a financial tool issued by banks/ credit card companies that allows you to make purchases on credit, with the promise of paying it back later.

The Secret Behind Credit Cards

Here’s the deal up front: “So, I get to spend the greedy bank’s money, buy what I need, pay it off every month- AND get rewards to shop and travel? Girl, sign me up!”

That’d be an amazing deal- if that’s how it played out in real life. Americans are FAILING remarkably at this “game”, where the average American has $6,218 in credit card debt. (Forbes, 2024)

Beyond that, the total credit card debt is $1.12 Trillion.

Nope, that was not a typo. It is TRILLION with a T!

I’m not done yet. The average interest rate is 27.62% 🤯. (Forbes, 2024)

Now as a Muslim who believes ribaa is haraam, the interest rate doesn’t make a difference. The point is, the numbers make ZERO sense. {and if they did, we’d still stay away to get barakah in our wealth}

Now I know you’re thinking, “Poor them. I am different though, Fatimah. I was born to WIN this infamous game of collecting rewards. I WILL pay off my card EVERY MONTH”.

If I got a dollar for every time I heard that, I won’t be writing this newsletter (j.k. love doing this).

Truth is, everyone gets a credit card convinced they’ll be the unicorn who does it perfectly…

until life hits them! One month, a family emergency pops up- ‘oh no, I’ll have to pay my balance next month’. 

Then, they have to go to the ER after a stomach infection that creeped up one night- ‘ouch, can’t make the payment this month. I got it next time for real’.

Then the get laid off at work or get a pay cut because the company’s numbers aren’t looking good- ‘dang, I can’t make this month’s payment either’. 

And just like that, their foundation collapses! They reach for those credit cards, after missing all those payments… now paying $27% in interest.

It only takes 1 or 2 emergencies, friends.

What Next?

If you want to try living without a credit card for the first time. Here’s how you can do it:

1. Use Debit Cards: Spend only what you have in your bank account to avoid debt. This helps you stay within your means. Learn more here

2. Focus on Savings: Build an emergency fund and save for large purchases instead of relying on credit.

3. Invest for the Future: Invest in assets that grow over time, such as stocks, real estate, or retirement accounts.

4. Free Yourself from the Bank’s Chains: A credit card-free lifestyle will set you free from falling into the hole a lot of Americans are in. It gives you freedom independent of other financial institutions.

5. Be Patient: Living a credit card free life requires patience. It means you say no to things you could get quickly with someone else’s quickly. When you delayed gratification, you’ll cherish it so much more when you get it.

I want you to catch real opportunities to build wealth. And I don’t want your strategy to be dependent on a plastic card.

Personally, the ribaa factor is sufficient to throw credit cards in the forbidden zone. For you, it might be something else. Whatever that is, master what the game is really about.

It IS possible to build your financial dream without credit cards, I know countless people who are doing it!

Until next week. Stay blessed and free!

Your N.1 Cheerleader,

Fatimah ✨

p.s. Schedule a 30-min call to build your financial future today! (It’s FREE- no strings attached)