Credit card debt : A problem called ‘Credit Card Debt

Credit cards are no more a luxury, they are almost a necessity. So, you would imagine a lot of people going for credit cards. In fact, a lot of people posses more than one credit cards. So, the credit card industry is growing by leaps and bounds. However, the credit card industry and credit card holders are posed with a big problem called ‘Credit Card Debt’. In order to understand what ‘credit card debt’ actually means, we need to understand the workflow associated with the use of credit cards as such.

Credit cards, as the name suggests, are cards on which you can get credit i.e. make borrowings (your credit card debt). Your credit card is a representative of the credit account that you hold with the credit card supplier. Whatever payments you make using your credit card are actually your borrowings that contribute towards your credit card debt. Your total credit card debt is the total amount you owe credit card supplier. You must settle your credit card debt on a monthly basis. 

So, you receive a monthly statement or your credit card bill which shows your total credit card debt. You must pay off your credit card debt by the payment due date failing which you will incur late fee and interest charges. However, you have the option of making a partial (minimum) payment too, in which case you don’t incur late fee but just the interest charges on your credit card debt. If you don’t pay off your credit card debt in full, the interest charges too get added to it. 

So your credit card debt keeps on increasing, more so because the interest rates on credit card debt are generally higher than the interest rates on other kind of loans/borrowings. Further, the interest charges add on to your credit card debt each month to form the new balance or the new credit card debt amount. If you continue making partial payments (or no payments) the interest charges are calculated afresh on the new credit card debt. So you end up paying interest on the last month’s interest too. 

Thus your credit card debt accumulates rapidly and soon you find that what was once a relatively small credit card debt has ballooned into a big amount which you find almost impossible to pay. Moreover, if you don’t still control your spending habits, your credit card debt rises even faster. This is how the vicious circle of credit card debt works.

Read More

3 Resourceful Ways For Women To Obtain A Business Loan

Millions of businesses are owned and operated by women in the U.S. today, and many successful enterprises have been funded through business loans. Business loans for women are readily available from various agencies and groups. Community organizations, lending institutions, banks, and grants can help women get a loan for their business easily and efficiently. The process is the same as other loans, but finding the right loan for a woman specifically can help bring many benefits.

Women may need a business loan for a variety of reasons. This can include expanding a current business, creating a new venture with working capital, setting up a franchise, or creating a research and development team to incubate a business for a period of time. Whatever the reason may be, all businesses run by women can qualify for a sizable business loan through a variety of groups and resources.

Business loans for women are specially tailored so that women can support themselves, any children, or other lifestyle factors along with their business plan. It’s important to determine what all the costs of operating a business may be, including expected salary for the owner.

If the overhead costs for an on-site business is too high, business loans for women are ideal to help set up a home based business. Many banks and institutions can help fund the working capital required for inventory, assets, capital equipment, or future loans.

Business Loan Applications require an in-depth assessment, possibly an interview, and a review of the business plan. A lender will also take into account character, credit, experience in the field, and reliability. Creditworthiness is important, and a credit and background check will be run to find consistency and integrity. A pre-qualification is a great idea to get an estimate on how much can be borrowed at one time.

Besides the many banks and institutions that fund business loans for women there are 3 resourceful ways for women to obtain business loans: The Minority Business Development Agency, Business Incubation, and Business Competitions.

The Minority Business Development Agency works closely with women to provide financial support for women of various ethnics and cultural backgrounds. They work with Wells Fargo, and can create a customized loan program tailored for the woman’s business needs. Centers with community projects abound across major states. These Centers can help women review and write business plans, submit them to competitions, and help apply for business incubation.

Business Incubation is a business support that provides resources and services to start-up fledgling companies. Business Incubation is a great idea for startup businesses, as the professional services can help get the business off the ground. Incubators can help with the loan process, as they are interested in seeing the business off to a great start. They will make an offer on rent cost, supplies, materials, and office space and adjust the loan amount as the business grows. This is an excellent opportunity for beginning an enterprise.

Business Competitions can help get a new idea or innovative concept off the ground. These are usually privately funded, and can open up doors to obtaining a full-fledged business loan. Alternatively, a winning plan can be granted a cash lump sum to start, and then qualify for other contests or incentives. Business plan competitions are often sponsored by corporations or private investors. They generally do not require a loan repayment, but can bring some great connections and referrals for future growth.

It’s easy to get started on a business loan for women in business; from home based businesses, startup companies in incubation, or just bringing a skeleton business plan to the bank. Many lenders will tailor and create a customized loan amount for the woman entrepreneur.

Read More