January 13, 2006

Credit Cards Up the Minimum Payments - What Every Entrepreneur Should Know…

For those of you who are in credit card debt you want to change your habits. I came across this article today which will interest you. In the past credit card companies have been very loose with giving credit and keeping the minimum payments very small. Unfortunately bankruptcies and bad debt are at an all time high. So what does this mean to you? Read on…

If you have been using your credit cards for instant gratification it will now cost you more on a monthly basis. There is a new rule that has been put in place to pay down the principle sooner. If you thought you were in a pinch before you will really be feeling it now. So what do you do?

From here on out evaluate all your purchases to see if they are truly necessary. A good question to ask yourself is will it make me money or cost me money to have this? When you spend your money on toys and other things to give you the feeling of satisfaction (by the way this very short lived) you will loose. This is called bad debt. However if you invest money on building your business, buying appreciating assets such as real estate, and continuing your education you will be paid back many times over. This is called good debt.

You must understand the difference between good debt and bad debt. Bad debt keeps you debt and makes you broke. Good debt on the other hand will return much more than the initial money you spent. A good book to read to understand this concept is Rich Dad, Poor Dad by Robert Kyiosaki. If you don’t have a copy I suggest you get a copy today.

To Your Success,
Andy Fuehl