Archive for August 25th, 2009

Streamline Finances With A Small Business Credit Card

If you own a business, you’re probably going to spend a lot of time setting what you spend on yourself apart from what you spend on the company. You might want to put all your payments on a small business credit card. Having statements you can look at will give you clear records, and allow you to keep essential information at your fingertips.

These days, having a credit card isn’t only a good idea, it’s absolutely necessary, and the same is true of your company. If you have two different statements, it will be much easier to organize the ones you need for work when it comes to filing taxes. This means you’ll spend much less time trying to search for what you need and can get things done on time.

Occasionally, you might be tempted to put personal expenses on your business card, or vice-versa, just for the sake of ease. However, this will lead to confusion in very important records, and you’ll end up regretting the decision. Make sure each card you have is used exclusively for its intended purpose, whatever that might be.

If you do everything properly, you’ll quickly start to see the benefits that come out of having your card. If you have a lot of payments but always make them on time, it will help improve your credit to an extent that you might eventually get a higher credit line and be able to purchase things that might have at one point been over your limit.

When you’re looking for your new credit card, you should consider your individual situation and see how it would be treated by several different companies, taking a close look at their offers for the fine prints and benefits. When you find the best one for you, consider having all previous balances sent over to it to streamline all that need streamlining.

Of course, you must already know how important it is to do everything right when it comes to money. As already mentioned, this means making each payment on time, every time. But it also means looking closely at things you might previously have ignored, such as your credit history, which strongly affects how companies see you.

If you can, make payments with your credit card. The card companies themselves appreciate this because they get what they’re owed instantly, and it speeds the process up for you as well. A credit card can take your business a long way, and provided you don’t abuse the privilege, should offer you many advantages in any financial period.

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Three FAQ on Credit Card Debt Settlement

Is there a legal basis to settle credit card debt?

While credit card debt settlement firms may assert otherwise, settling a credit card debt does not involve a legal secret.

Credit cards are contracts between consumers and credit card companies. These contracts can be legally modified if both sides mutually agree to the changes. According to the Credit Card Debt Survival Guide, for the consumer the most important LEGAL feature of a credit card debt settlement is getting the negotiated debt amount and the terms in writing and signed.

Can I settle my credit card debt while my payments are still current?

Credit card companies will only settle with those consumers who have missed monthly payments. If the banks negotiated debts with current account holders, most consumers would want to settle for less than the full amount.

To settle a credit card debt for less than full value with the bank, a consumer will have to risk not making monthly credit card payments, then save those payments for a lump sum settlement. The risk comes from being in arrears and having the bank not agree to the lump sum amount.

How much of a balance reduction do credit card companies usually settle for?

Online consumer forums have stories of consumers settling for as little as 20 and as much as 70 percent of their credit card account’s original balance. According to credit card debt settlement expert Charles Phelan, consumers who settle on their own get the best settlements. Phelan also says credit card companies would rather deal directly with a consumer, rather than go through a debt settlement firm.

According to the Credit Card Debt Survival Guide, banks are most likely to settle for the lowest amount right before they write the account off as a loss. Six months after payments on an account stopped is generally when that happens. At this time it is common for a bank to approach the consumer with a settlement offer. Before this period, when a consumer in arrears approaches the bank with a settlement offer, the bank wants to see evidence of need such as low income, job loss, family death, illness, etc.

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