Ramit Sethi: This Is the First Thing You Need To Do If You Want To Build Wealth

Ramit Sethi, author of the New York Times best seller, “I Will Teach You to Be Rich,” as well as founder and CEO of GrowthLab.com and of IWillTeachYouToBeRich.com, recently said that there is one simple — but often overlooked — thing you need to do if you want to build wealth.

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Credit cards are great financial tools — that is, when you pay the balance in full every month. Not only do they help build credit, but they also help you accumulate rewards, miles and offer several other benefits. On the other hand, when used improperly, they can create enormous debt for individuals .

“We all have credit cards — and we all hate them. But there are some easy, quick wins you can get with a few simple actions,” Sethi wrote in a September 17th newsletter.

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That’s why Sethi said that you should regularly check your annual percentage rate (APR) on your cards to determine the interest charged on your balance.

To put this in perspective, “the average credit card interest rate is 23.19% for new offers and 21.51% for existing accounts,” according to WalletHub .

Sethi suggested you call and just ask your credit company if they can lower your APR. For instance, he said that arguments that can help include having paid a bill in full and on time for several months. You can also say that you’re considering switching to a competitor.

As he also noted in an X (formerly Twitter) post , “sometimes they’ll drop it for a period of time, which can save people thousands of dollars.”

“Sometimes they’ll tell you they won’t do it. You’ll never know without asking,” he added.

Sethi said he has reminders in his calendar to call his credit card companies and renegotiate.

“The principle is this: Start with a quick win, something that’s small and easily achievable. Then, use that momentum to build toward big, systematic wins. Ones that’ll last you a long, long time,” he added.

This article originally appeared on GOBankingRates.com : Ramit Sethi: This Is the First Thing You Need To Do If You Want To Build Wealth