How to Get Out of Credit Card Debt
At one point in time, a vast majority of people will experience the dread that is credit card debt. While it’s not enjoyable, there are lessons to be learned and tools to utilize to get out of that debt. Even though there are tools provided, they have to be used in...
How Credit Cards Work
Credit cards are often difficult to master. Each credit card company has different rules, interest rates, requirements to gain credit, etc. Unfortunately, during our formative years, we aren’t really taught how a credit card works or how to use one responsibly. This simple guide to credit cards will give you the basic information you need on how they work.
What exactly is a credit card?
A credit card, at a base level, is a plastic card. That card connects to a credit account that supplies a credit card user with a set amount (known as the limit) of money they can spend for purchases. For example, a credit account could have a credit limit of $2,000. That means the credit card user has $2,000 of credit to spend on purchases. At the end of a monthly cycle, the credit that was used by the credit card holder will be their balance. If that same credit card holder spent $1,400 of their $2,000 credit limit, their balance would be $1,400. Each credit card company is different in terms of minimum payment required on a monthly balance but, for this example, let’s say the minimum payment is $400. The card holder would have to pay at least that $400 to be considered in good standing with their credit card company. The remaining $1,000 balance would then be subject to an interest rate. This becomes important because, as a balance remains, there is interest charged on that balance. In the long run, a credit card holder could end up paying more than they actually charged on their credit card because of interest rates and fees assessed to their balance.
What are the different types of credit cards?
- Unsecured
An unsecured credit card means that there is no deposit required to secure the line of credit. Each time a card holder uses this type of credit card, the company backing the card is extending credit with no requirement of collateral. These are the most common types of credit cards.
- Secured
Secured credit cards are credit cards that the company backing it requires a deposit to extend credit. This would mean that an applicant, if approved, would have to pay a set deposit (usually around the $250-$500 mark) to obtain credit. This deposit will also serve as the limit for the credit card user. These types of credit cards are best for those with no credit or those who are rebuilding their credit. Over time, if the credit is used responsibly and payments are made on time, a credit card holder may increase their limit by providing an additional deposit.
What’s the best way to pay off a credit card balance?
There are varying opinions on how you should pay your credit balance. The most popular is that you just pay the balance in full every time. This is to avoid the interest fees that accrue on top of your remaining balance.
Through education, you should be able to gain a firm grasp on what a credit card is. Having this foundation of education will help you responsibly use a credit card should you choose to apply for one.
4 Common Mistakes that Deter Your Online Business Success
In this video, entrepreneur Rachel Krider talks about her mistakes that she’s made in her home-based business. These mistakes are all common, and can easily avoided by following Rachel’s personal tips below.
Looking for an online business that you can do from anywhere? You should know the four most common mistakes that people make in their attempt to create success working online. I’m Rachel Krider, and as a seven-figure annual earner within the online business space, I’ve identified the four most common mistakes that people make in their attempt to create success working for themselves. I’m most familiar with these mistakes because I’ve made them myself!
Mistake 1
Number one on my list is to make sure that you choose a product that you can really get behind. When I first started in business I just jumped right in. I didn’t think about it too much and the product wasn’t quite aligned with who I was. The second time around in business, like what I’m doing right now, it was a real good fit for me because personal development was a journey that I was on already. I was reading the books and going to the conferences, so I had a real passion for the product even before I got started in the business. Using the product yourself, without the income opportunities, is a key component when you’re considering getting started in any kind of enterprise.
Mistake 2
Second on the list is make sure the system that is going to create your success within the business matches your personality. If home parties and things of that nature are right up your alley, that’s awesome for you; go out there and create that success. But if that’s not you, then look for something that’s going to be in alignment with who you are and who you want to be.
Mistake 3
Number three on my list is to make sure that the math actually makes sense. Now this was something that I simply did not do my first time round in business. My goal initially to achieve success in business was to make $10,000 a month. I make just shy of $2,000 on the low-end with every time a new customer that gets started. So to achieve my goal of $10,000 a month, I’m looking at servicing just over 5 customers.
Mistake 4
Give yourself enough time. I see people get into business and give themselves a couple of months to try to figure it all out, get frustrated, lose hope, and then off they go onto the next thing or back to the job. Don’t let that be you. When I started this business, in my first four months it felt like I was doing a lot of work for little reward. In fact, in four months I made all of $2,000. But then by fifth month, my income jumped up to $25,000.
If you’re still looking for a business and you haven’t yet found your thing, go ahead and request some free information. I’m going to give you a call and walk you through some information. If you’re already on your journey and you’re super happy then just follow my videos. Who knows, you might be able to pick up some other tips and tidbits along the way to create your success as an entrepreneur! I wish you all the very best.
About Prosperity of Life
Prosperity Of Life creates popular personal development courses and seminars to help people transform their lives from the inside out. Personal development is our passion. Personal growth is significant in every success journey and this is the premise of Prosperity Of Life. The Founders of Prosperity of Life are successful entrepreneurs who also offer an online business opportunity based on their collective experience of wealth creation and business success in the personal development industry.
Prosperity of Life’s mission is to help people achieve success and gain financial independence by providing effective self-educational products and events that enhance confidence and grow self reliance. We believe that the individual has the ability to realise their inherent potential and live a life of personal fulfillment. Specifically designed for maximum profitability in the shortest space of time possible. Earn profits, bonuses, leverage and residual income from multiple sources.
For more information about Prosperity of Life visit the company website.