Love being self employed but

[FormerBoxer]

most of my profits are going to my debt every month. I have a business making great weekly profits but I'm paying off mostly credit cards. Then when I factor in rent, utility bills, my child school, food, etc. I can't save much. I don't want to pay off all my credit cards because I need cash flow for my business to operate.

Anybody have experience with what is the best solution to pay down my debt besides paying it all off at once?

If I have a credit card that I pay $200 a month minimum payment... should I start paying $300 a month? I tried to transfer all my debt on one credit card to have a 0 APR but was declined because debt to ratio.

I asked some of my "marketing friends on FB and according to them "I PAY OFF ALL MY DEBT... I HAVE ZERO"... MUST BE NICE!

Thanks!

 

[Bread]

You've fallen into the credit card trap - you shouldn't be paying off the minimum you want to snowball that debt. If you constantly pay off the minimum it will take you a long time to escape.

My credit card bill this month is only £100 - the minimum payment is £5. With 34.5% APR... I'm sure you get the picture.

To put it bluntly, you either need to earn more money or reduce your expenses. You shouldn't be saving money whilst you have debts, your savings/investments won't outperform unsecured debt interest charges.

 

[MisterF]

Look up the different %APR you're paying on your cards.
If you can't transfer balances to a 0% card, see about moving to a lower %, but factor in the costs involved if any.

Unable to consolidate, you need to pay off the min balance each month on all the cards, but focus on clearing the card with the highest rate first.

 

[DonMillion]

Work harder! Earn more money!

 

[FormerBoxer]

You've fallen into the credit card trap - you shouldn't be paying off the minimum you want to snowball that debt. If you constantly pay off the minimum it will take you a long time to escape.

My credit card bill this month is only £100 - the minimum payment is £5. With 34.5% APR... I'm sure you get the picture.

To put it bluntly, you either need to earn more money or reduce your expenses. You shouldn't be saving money whilst you have debts, your savings/investments won't outperform unsecured debt interest charges.

Thanks man! I think I'm going to start setting up fixed payments every month for my credit cards. Instead of paying $200 a month I will pay $300 on one credit card and the same for the rest of my credit cards. What happened is I needed startup when I started my business and literally went all out with credit cards and even 401K with my past job. Now I having a growing business that makes a lot a year... just have to get my debt paid off!

 

[William702]

Work harder! Earn more money!

Sage advice

 

[FormerBoxer]

Look up the different %APR you're paying on your cards.
If you can't transfer balances to a 0% card, see about moving to a lower %, but factor in the costs involved if any.

Unable to consolidate, you need to pay off the min balance each month on all the cards, but focus on clearing the card with the highest rate first.

Yeah was just looking I have two credit cards with a $550 balance and $320 balance with APR ranging from 23-25% I think I will cut a check for both of them and two will be gone.

 

[FormerBoxer]

Work harder! Earn more money!

Boom! I agree! I was thinking about selling somethings on eBay to get some quick cash to pay off debt. Very sad making over 6 figures a year and feel like I'm back to a 9-5 job.

 

[awesomewebsites]

I have used my credit card only few times and it was because debit card was not allowed to pay for what I was buying. You need to cut all unnecessary expenses till you increase your income.

 

[DonMillion]

Boom! I agree! I was thinking about selling somethings on eBay to get some quick cash to pay off debt. Very sad making over 6 figures a year and feel like I'm back to a 9-5 job.

If you can earn 6 figures a year, double the efforts and make 2 x 6 figures a year. When you find method, only focus on that. ONLY ON THAT! I found method couple $ per day, now i have almost 70$ per day. In a 2 months i hope i will have at least 150$.

 

[thenwhat]

If you have a ton of credit cards to pay off I recommend taking out a loan for debt consolidation.

That way all of your credit cards with high interest are paid off and you’re only making one payment for everything.

 

[FormerBoxer]

If you can earn 6 figures a year, double the efforts and make 2 x 6 figures a year. When you find method, only focus on that. ONLY ON THAT! I found method couple $ per day, now i have almost 70$ per day. In a 2 months i hope i will have at least 150$.

Nice! I'm solely focusing on an established websites that is generating 6 figures and growing. I was thinking about starting up another one since I already proved I can take a business to 6 figures. However, I needed inventory, marketing, paying employees , etc. and that is how I got into debt a couple of years ago when I started. I'm kinda scared to start up another business for this reason. I could sell this business and pay off all my debt and start another but I'm passionate about this business.

 

[FormerBoxer]

If you have a ton of credit cards to pay off I recommend taking out a loan for debt consolidation.

That way all of your credit cards with high interest are paid off and you’re only making one payment for everything.

Yeah, I tried doing that and unfortunately I got declined. I have scores ranging from 685-702. The reason why they said was debt to ratio is too high. I have money to pay it off, I don't think it would be a good idea because I need it for cash flow for my business.

 

[thenwhat]

Yeah, I tried doing that and unfortunately I got declined. I have scores ranging from 685-702. The reason why they said was debt to ratio is too high. I have money to pay it off, I don't think it would be a good idea because I need it for cash flow for my business.

Ah I see. My friend had a low score as well (650 or so) and was some how approved. Did you apply for a loan at your bank?

 

[Gogol]

I know I do not have any serious input on this topic, but I still want to chime-in with a basic advice that holds true for everyone. It would be: Don't bite more than you can chew!!

What I would suggest is that, pay off all your debt as soon as you can. Borrow money from your family members if you want to. Just pay them off.

 

[BrandingCat]

Try to punish yourself for a while on spending ( even food), explain your family same and cut all fancy fun until you coming on upper waters.

Never play with banks too much even when you are 100 %.

A few years ago I was in same shit almost, being an immigrant in London...

 

[FormerBoxer]

Ah I see. My friend had a low score as well (650 or so) and was some how approved. Did you apply for a loan at your bank?

No I didn't recently. I think I will try. The last time I did that was 2 years ago and they didn't want to work with me because I was self employed for a short amount of time.

 

[FormerBoxer]

I know I do not have any serious input on this topic, but I still want to chime-in with a basic advice that holds true for everyone. It would be: Don't bite more than you can chew!!

What I would suggest is that, pay off all your debt as soon as you can. Borrow money from your family members if you want to. Just pay them off.

Would love to borrow money off family members... most don't have much money. They know I have a successful business so I think it would be a slap in the face if I even asked. Sometimes, I feel like just paying my debt off ($13,500) with my cash flow but I don't know if that would be a good idea just in case something would happen. I'm sure I could hustle and build websites and flip them and make that much but so much shit is going on with my life. Hey that's life I guess.

 

[tompots]

Scale it up and earn more, ill be doing just that soon...

 

[Gogol]

Would love to borrow money off family members... most don't have much money. They know I have a successful business so I think it would be a slap in the face if I even asked. Sometimes, I feel like just paying my debt off ($13,500) with my cash flow but I don't know if that would be a good idea just in case something would happen. I'm sure I could hustle and build websites and flip them and make that much but so much shit is going on with my life. Hey that's life I guess.

I am not really sure how the credit score is calculated in your country, but I would always pay all my debt off ASAP even if I have to pay them the same sum. That way, I will be able to sleep more peacefully knowing that I don't owe anyone, any money. Do some calculations ( take help from a local person who knows about these things) and pay them off. I think you will save some money, because the banks ( atleast in my country) do calculate interest on the interest itself. I might be wrong though.