Do Not Get a Loan or Credit Card Before Reading This
Are you feeling the pinch?
Are things getting tight around money?
Here are a few home truths about credit cards and a possible alternative way to raise money.
Please bear with me, since I am a bit of a nerd with numbers and spreadsheets and this is what I came up with when applying for a credit card myself.
Don’t Use Your Credit Card to Withdraw Cash
These days we are used to withdrawing cash on our debit card from an ATM. Be careful of doing the same on a credit card. You could end up paying an immediate 3% fee for a cash withdrawal.
This is dangerous because your debt has already gone up by 3% and if you fail to pay the whole balance off by the 50 day grace period (sometimes 30 days,) you will owe interest on your debt +3%. The interest added may well be from the moment you withdraw the cash.
For example: Take out £1000 cash on your credit card
At the end of 30 days you could well owe:
£30 (for a cash withdrawal)
£24 interest plus
£1000 you withdrew
Your debt has grown to £1054 in one month.
If you pay a minimum of 5% off it £52.70, you will be paying interest on over £1000 in the next month.
It is scary, and if you are having money problems, increasing your debt is not always a good answer.
An alternative is to ask for a loan in the bank (often cheaper,) or perhaps make some plans earlier and go for a second income, before things come to a head. More about that later.
If you must use a credit card – use it for purchases. It is not a bad idea to use it for things you buy up-front, like petrol, which are going to benefit you in the near future. Try and avoid using it for consumables like food, unless really necessary.
Most of us have some time we could allocate to earning some money at home or in our spare time.
There are a myriad of things that can be done.
Be Wary of Scams, of Which There Are Many
My Dad used to say there was no such thing as a free lunch. What he meant was that if someone was offering something free, they probably want something from you in the future. This is not always true, as I will explain later, but it generally is.
Most people who get into financial trouble have either taken a risk or chance that things will get better or are caught out when something goes wrong, illness, accident or job-loss. None of us are safe these days in our jobs. By the time the mucky stuff hits the fan, it can be too late for a rescue and we get into even deeper trouble. In fact the more difficulties we have, the higher the interest rate. That is the last thing we need.
One thing we can all do is take out an insurance against the possibility of future financial problems. The world is shrinking and with modern communications, we can access information and connect with people all over the world. We can use that to our advantage.
Do you use Facebook or Twitter or any other social media? If you do, you are doing something that was unthinkable 30 years ago.
You are also already part way to establishing your own online business. Does that surprise you?
How often do we say “If only I had done something about it earlier, now it is too late.”
Here is a way you can do something now and build some insurance into your future. It is possible, with help and guidance to start something now which can slowly grow into a steady income over time.
It can be done by anyone with basic internet skills. It can be built up slowly or quickly, depending on the time and effort you can put in to it. You can do it in the morning, in the evening or, if you are a night owl, at night. Somewhere in the world, someone is awake now and every minute of the day. But the beauty of an online business is that you do not have to work 9 to 5.
WARNING: This is not a “Get Rich Overnight” scheme.
WARNING: You may get to quite like doing it.
WARNING: you may have to make a small investment.
BUT: not to get started. It is 100%, genuinely free to dip your toes in the water of online business and try it out.
WARNING: No credit cards or debit card information is needed, unless you, later on, feel you want to really make this a serious business.
WARNING: We will teach you how to do it. You have to take the actions, of course.
We Love Being Wealthy Affiliate Member and We Love Success
At WA we love success. We love success for everyone, including you. There is a community to back you up and support you. There are courses for you to take. There are experts on all the aspects of this business available.
We are not going to give you something to sell, we will help you find your own little niche and make money from it.
Do you have a hobby, an interest you know something about? Think of the enormous international business that has grown from the great bake-off. Baking cakes is attracting millions of viewers in dozens of countries.
It does not have to be a high-level skill. People want to know how to bake bread, how to boil an egg, how to make sponge-cake. Where to source those sweet little crinkly cups for cupcakes.
Information and it’s bi-products is the business.
It certainly does not have to involve cooking. The niche is up to you.
You need no stock
You need no shop.
You need no van.
If you have a computer and a good internet connection, you can start for free now.
Here’s a link to get more information.
Good luck whatever you decide. Plan a bit for the future, it makes the future less stressful and a lot more fun.