Be Smart With Your Credit Card Debt
Do you worry about reducing your debt? If yes then why are so many people only paying the minimum payment on their credit cards? Is it because they think if they keep paying the minimum payment every month it will pay itself off within months? Well that is not the case and we have to sort this problem out and fast.
Credit card companies love the fact they we only pay the minimum payment every month. Why? because they are raking it in while the interest rates are crippling us. So what started out as a small credit card bill could escalate into thousands of pounds. Say your credit card statement arrives your balance is Ј2000 the minimum payment is Ј40 which is 2% of your balance, if you keep paying just the minimum payment it’s the interest that most of your Ј40 is going to and not much to your bill.
The minimum re-payments have dropped as the credit card companies and banks originally charged 10%, but they found that customers where paying their debt back a lot quicker with the 10%. So the way for them to get more interest out of us was for them to reduce the percentage of the minimum payment, making us think that they where helping us but in fact they where just getting more money from us by adding on more interest, as it will take longer for us to pay of the credit card bills.
So what to do if you find yourself in this situation:
Stop using your credit card, better still cut it up (in case you get tempted) Sit down and workout how much more you can pay than the minimum payment they’re asking for, once you have worked out how much stick to it even when you see the minimum payments going down don’t be tempted to reduce your payment or your be back to square one.
If you have more than one credit card the best way to reduce your debt is once again stop using them. Work out which one has the highest interest rate and make the highest payment to that card. Keep paying the minimum payment on your other cards and once the card with the highest interest rate is paid off, go to the next highest card and so on until all your cards are paid off.
You may have to tighten your belt in for a while but this will save you a lot of money in the long run. Yes we all need credit cards and if you use them properly they are fine, but if you cannot afford to pay them off at the end of the month then this is when you get yourself into all sorts of trouble.
Business Credit Cards - Advantageous in Many Situations, Large and Small
For as many different types of businesses there are in the world, there are almost as many types of business credit cards. Business cards come in various forms, and choosing the right one may in fact be a difficult business decision.
So pretend that you're my parents for a moment, and you own a pastry and cake shop, as they do. One day an obsessive-compulsive mother walks in, ordering a cake for her daughter's wedding. She wants edible candy flowers on it, edible silver bells, a photo screened on to the icing, and various other costly things that need to be exactly as she ordered, else she will have a breakdown and become catatonic for eight hours. It's a very expensive cake to make, costing about $500 to make (fortunately you will be charging the fanatical mother about four times that), but it's been a slow month. You don't have $500 ready at your disposal. Right at that moment the great American slogan 'Buy now! Pay later!' comes ringing into your head and you realize that the cake is possible to make before ol' OC mom pays you, because you can use your small business credit card.
Or maybe you run a business that involves flying around rich 30-something investment bankers that still gel their receding hairlines and dress like they're seventeen. A small business card that has a rewards program, specifically one targeted for frequent flyer miles, might help you cut back on the cost of sending one of the pompous little buggers from Boston to Los Angeles so he can decide not to invest in one of your projects. It might even pay for your transport to a respite in Oahu where your cell phone tab will be grossly inflated soliciting more bankers.
You might be the head of a company that used to be small, and suddenly is not so small. You find yourself employing over 100 people, and you want a business card to make transactions less nail-biting. Small business cards don't really do much for you, but you haven't seen any ads on TV or online for anything that could help you. Rest assured that creditors make custom business credit cards for larger companies, but as they are rare, you don't hear too much about them.
These are just three possible examples of the dozens of business cards out there targeted to a specific business situation. Just as credit decision-makers want to select the card best suited to address their needs, card issuers are constantly creating new offers to smaller and smaller niche markets making the selection process increasingly more difficult.
Many of the cards for small businesses have a 0% introductory APR, for anywhere from six to fifteen months, which is quite a reasonable and affordable start. As far as large business cards go, their APRs are tough to nail into a cut and dry generality, as almost all of them are custom made. The good news is if you're fretting about which large business credit card to get, odds are you don't need to fret about a lot of other things involving money that the rest of us do.