All credit card debts are costly, stay away

The credit card is a wonderful tool of the present day. Swipe it and you can have anything you want in the world. Buy now and pay later on.

Most often, when using their credit card, people think of no more than how big their monthly payment will be. They do not think about the total sum or even the time they will take to repay that debt. If the payment fits into their monthly budget (if they have one!) then the purchase is done.

Credit cards usually charge very high interest rates. As a result, when you make a repayment, most of its portion goes towards paying the interest and not towards the outstanding balance. Therefore, if you calculate the total sum that you will pay then you will probably think of never using a credit card again. For example, for a balance of $2000 and an interest rate of 18%, you will have a monthly instalment of $40. Well, that is good enough. However, if you look at it closely then you will see that you are actually paying almost $30 towards interest and only $10 towards your balance.

So, now you see it, don’t you? Thus, if you simply keep making the minimum payments every month (as you would have planned) then you will take 30 years for coming out of that debt, costing you $7000.

Now, I have not even included the extra charges that you might incur in case you miss or make a late payment some month. The fact is that these companies actually hope that you miss your payment. This way they can earn lots of profit through the extra charges, late fees and additional interest that they will impose upon you. If you use any of the online debt calculators then you will see reality.  Therefore, it is important that you come out of these credit card debts as soon as you can. The longer you stay in the more you are paying in the end. Thus, it is important to come out of these debts.

You can try for some low interest debt consolidation loan that does not involve taking a loan from credit cards. This way you will be able to pay them back. These loan companies might also negotiate and get you a lower rate of interest on your credit cards. While credit cards are definitely convenient, they are certainly to be used with a lot of restraint. If you lose the restraint then you are in for a long long time.

Thus, make every effort you can to relieve yourself of this burden of credit card debt.

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Business Finance – An Exercise In True Cash Flow Optimization

Every business is going to need steady income in order to grow forward. You might think that all of your income is going to come on time, and for the most part this might very well be true. Yet there might come a point where you need to get a lump sum in the door in order to buy more expensive products. Yes, credit might be an option, but what if you don’t get approved in time? After all, so much in business is a matter of getting your timing right on the money. Get your timing wrong and your business begins to fall apart. Despite what you might have seen on television, when a business doesn’t run smoothly it’s not easy to just scrap it and start something else. It’s in your best interest to take every business seriously — that way you will not have any trouble getting things together in a big way.

Business finance options are an exercise in true cash flow optimization. When you have your eye on a large purchase, it’s a lot smarter to make sure that you’re going to be able to take care of it than to have to wait to grow your business. By pursuing business finance solutions that let you leverage your receivables in a meaningful way, you’re already going to be ahead of the competition.

Business Finance

Invoice discounting is a practice that has been around for a long time. You’re basically getting the cash you need to do business by turning over your invoices. The right lender can make this a very straightforward process that doesn’t leave you waiting forever to get your proposal funded.

What can you do with a lump sum of cash? Quite a bit. The nice part about business finance that follows your invoices is that you don’t have to worry about collection. Again, the right lender will gladly make sure that you don’t have to think about trying to chase your clients. They will usually leave a bit of a buffer between your invoice total and the amount that you get in a cash sum, but that doesn’t mean that there’s no way that you’ll be able to push forward with your agenda.

On the contrary, this push to go into a lump sum type of deal is what’s going to actually lead to great things — why not make sure that you get started today?

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