Credit cards are tempting. How can you beat the reward programs, fraud protection and expense tracking available with credit card accounts? More than two-thirds of businesses manage expenses – like airline tickets, lodging, car rental and meals – with credit cards. Businesses use credit cards as cash management tools.
Can’t be Beat Until Payment is Due
The problem with your credit cards is when the payment is due. Any business would be at the top of its profession if it garnered 20 to 30 percent profits. Credit cards charge you these high interest rates, which are impossible to repay long-term. No legal business has such high returns.
Nations around the world – Portugal, Ireland, Italy, Greece and Spain (PIIGS) – are defaulting on their massive debt due to the high interest rates. These nations with vast assets, such as property, equipment and public companies, can’t pay their bills. So why do businesses believe they can keep up with exorbitant credit card interest rates?
“Hook, Line and Sinker”
Everyone should be in the credit card business because the profit model is amazing: offer “free money” and revolving credit with high interest rates for enslaving the masses. Every firm has another item to purchase: office supplies, equipment, a restaurant meal for a client and the list goes on. Credit card debt can increase quickly.
Companies understand the bottom line. You can’t continue to pay very high rates of interest on credit cards and be profitable. Unless your profits are higher than the 29.99 percent interest rates, you will eventually go bankrupt. Business credit card debt is only sustainable for short-term needs. But you have been encouraged to use your revolving credit to maintain a long-term balance. Individuals and businesses remain “hooked” on credit card debt in perpetuity.
“Non-Productive Interest versus Productive Investment”
You have a business with skilled employees. You have invested a vast amount of time, energy and money to be successful. Your company succeeds when you make productive investments into improving your company. Interest is not productive.
Your limited budget is suffering due to money being stolen to pay unproductive interest rates. You can barely make the minimum payments. The bottom line is that you must change the rules of engagement. You are stuck in debt. New loans don’t solve the problem. You need a game changer.
“Devote Energy to Money Management”
It is easy to fall into a hole; it is difficult to get out of that hole. Stressed managers, worrying about high levels of credit card debt, won’t be as productive. It is easy to get in trouble because your company needs capital to survive. It is difficult to get out. But it is possible with debt relief.
Your responsibility for the debt will depend upon the type of organization you have. When debt is personally guaranteed, it is more difficult to expunge. You don’t want a bankruptcy on your credit record, which would damage your reputation.
“Debt Relief is a Game Changer”
Business leadership is proactive in finding a credible solution to problems. Debt relief is the answer to your problem. It changes the terms and conditions of your loan. It makes your credit card debt manageable.
You have nothing to lose but your headaches over your high credit card debt. Fill out the form above to see what you need to save your business. There are no upfront fees. SmartSpending gets paid when you get real answers. As a business leader, doesn’t that make sense?
Get started with SmartSpending today. You’ve invested time, energy and money in making your business thrive. Don’t let it flounder due to high levels of credit card debt.
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