How to Save Good Business Money Through Balance Transfer
Party planners, find ways and means to build capital for their business. Loans and financial help can be obtained readily, and all these could potentially help a starting entrepreneur if managed properly. Number one priority is not spending on things that don’t convert to sales. To a starting business person, saving money means not spending on things you don’t really need.
There are a lot of ways to save, particularly if you extend your financial capability using a credit card. Sometimes however, carrying a balance on your credit card could make you miss out on hundreds of dollars in potential savings.
One way to do this is to avail of 0 APR credit cards. These no fee balance transfers offers are readily available online. And, savings will build with the money you do not spend on interest. Let’s examine how much potential money can be saved with a 0 APR balance transfers. If a card’s current balance is $5000 at an annual interest rate of, say, 14%, during one year, having this balance on a high interest credit card will result in interest charges of approximately $740. An amount that could have been invested to things that will yield more cash.
Transferring the $5000 balance to a credit card that offers 0 APR balance transfers will save the $740 that we need for our business. Using this money to pay down an existing credit card debt would reduce the balance to $4260, a far lower amount than a balance of $5740. There’s a $1500 difference in your credit card balance and this would result in interest savings of $224 the year following the expiration of the 0% interest rate.
When the 0% APR balance transfer period expires, we can transfer our balance to another credit card offering a 0% APR by simply maintaining a nice credit score. Going back to the example, when the 0% period expires, the remaining balance would be $4260. At 14%, the interest expense would be $636. When there’s a 0% APR, that money could be applied to the balance and reduce the debt to $3624.
This is just a simple strategy to take advantage of a 0 balance transfer, which would not only have saved $1400 in interest, but lowered the debt by $1400. The estimation above does not consider any additional payments you can make. By paying $100 per month in addition to applying the money saved on interest during two years, credit card debt would be down to a manageable $2600. Making the same payments on a credit card that did not offer a 0% APR would have resulted in a balance of $3700 at the end of 2 years, solely due to an additional $1,100 on interest.
Smart party planners have a better longevity. Longevity in our sector means being wise regarding money systems and how they pass from one hand to another. 