Love being self employed but

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Find out if they calculate the interest daily and whether they allow several partial payments and if those partial payments are taken off the balance right away. Making 3 payments of $100 throughout the month is much better than 1 payment of $300 when its due if its daily interest+partial allowed and taken off right away.

 

[FormerBoxer]

Find out if they calculate the interest daily and whether they allow several partial payments and if those partial payments are taken off the balance right away. Making 3 payments of $100 throughout the month is much better than 1 payment of $300 when its due if its daily interest+partial allowed and taken off right away.

Yeah, they do. I looked at my estimate payoff with CCs and some say 30 years paying the minimum payment... hell no! I need to cut these bad boys up once I pay them lol

 

[davids355]

I also have quite a lot of debt.

I just keep a strict budget so I have all my incomings and outgoings listed out in a spreadsheet, then I make sure that I account for every type of expense - even down to items that fluctuate such as food, petrol etc - for those I work out averages over 3 months.

Then I have allowances for overflow / unexpected expenses, then allowance for new business / cash flow requirements.

Then I have a minimum that I pay off of credit cards on a weekly basis. So I don’t need to worry about the debts, they are decreasing steadily now that the money is coming in regularly.

At the end of each week I note how much I have saved and / or repaid- and that keeps me motivated to reduce the debt.

Oh and regarding apr- just look around everywhere that you can and sign up for every card until you have enough to spread your debt over all 0 apr cards - it should be possible.

If you can’t get it all on zero then push the repayments towards the card(s) with high interest rate- once you get those cleared then the reduction from not paying interest you can also plow into the reduction of the debt.

Oh, and it should go without saying - don’t do the minimum payment. Account for all your spending requirements first, then pay as much as you can, WEEKLY. Hold yourself accountable too; the quicker you pay off that debt the better, otherwise you’ll never get out of the trap.

 

[FormerBoxer]

I also have quite a lot of debt.

I just keep a strict budget so I have all my incomings and outgoings listed out in a spreadsheet, then I make sure that I account for every type of expense - even down to items that fluctuate such as food, petrol etc - for those I work out averages over 3 months.

Then I have allowances for overflow / unexpected expenses, then allowance for new business / cash flow requirements.

Then I have a minimum that I pay off of credit cards on a weekly basis. So I don’t need to worry about the debts, they are decreasing steadily now that the money is coming in regularly.

At the end of each week I note how much I have saved and / or repaid- and that keeps me motivated to reduce the debt.

Oh and regarding apr- just look around everywhere that you can and sign up for every card until you have enough to spread your debt over all 0 apr cards - it should be possible.

If you can’t get it all on zero then push the repayments towards the card(s) with high interest rate- once you get those cleared then the reduction from not paying interest you can also plow into the reduction of the debt.

Oh, and it should go without saying - don’t do the minimum payment. Account for all your spending requirements first, then pay as much as you can, WEEKLY. Hold yourself accountable too; the quicker you pay off that debt the better, otherwise you’ll never get out of the trap.

Great advice! Thanks for admitting you have debt. I felt like the only self employed person that have debt. Everyone I talk to in this type of work pay their debt off every month (possible) but they tell me they pay cars, vacations, you name it in cash lol.

 

[BassTrackerBoats]

I would handle it this way.

Pay the minimum on all your cards except the one with the lowest balance.

Pay as much as you possibly can on that one and get rid of it, take it out of your wallet so you don't use it and put it someplace safe.

Once that is paid off then repeat the process with the next lowest balance.

You'll end up being able to pay more and more on the lowest balance card and thus eliminate your debt.

BTW, don't close those accounts once you pay them off as having available credit on a card plays into your credit score (provided you are in the USA).

13.5K is not a ton of money and an alternative option would be using prosper or a similar site.

A 700 score would probably qualify you for a consolidation loan that you can pay off in 36 months at around 500.00 a month.

 

[davids355]

I would handle it this way.

Pay the minimum on all your cards except the one with the lowest balance.

Pay as much as you possibly can on that one and get rid of it, take it out of your wallet so you don't use it and put it someplace safe.

Once that is paid off then repeat the process with the next lowest balance.

You'll end up being able to pay more and more on the lowest balance card and thus eliminate your debt.

BTW, don't close those accounts once you pay them off as having available credit on a card plays into your credit score (provided you are in the USA).

13.5K is not a ton of money and an alternative option would be using prosper or a similar site.

A 700 score would probably qualify you for a consolidation loan that you can pay off in 36 months at around 500.00 a month.

Totally agree with this. I ordered my cards by either the interest rate, the lowest balance or the shortest time before zero percent interest is due for expiry. Then I pay off weekly to each card until clear.

 

[trapdaddy]

Just keep goin hard

 

[jazzc]

They know I have a successful business so I think it would be a slap in the face if I even asked

What successful business would that be? You cant even afford 10k to pay off the debt.

Ride down from the pride horse and either work harder or work harder.

 

[FormerBoxer]

What successful business would that be? You cant even afford 10k to pay off the debt.

Ride down from the pride horse and either work harder or work harder.

What successful business would that be? You cant even afford 10k to pay off the debt.

Ride down from the pride horse and either work harder or work harder.

I owe only 13,500 on my credit cards to be exact. I can pay it off with my business cash flow but I don't think that would be the best idea. I just paid a huge amount to the tax man. When you have a family of 3 living in New England paying thousands a month on rent/utilities a lone it's not that easy. I just have to work harder.

 

[jazzc]

I owe only 13,500 on my credit cards to be exact. I can pay it off with my business cash flow but I don't think that would be the best idea. I just paid a huge amount to the tax man. When you have a family of 3 living in New England paying thousands a month on rent/utilities a lone it's not that easy.

Yes, everyone knows people have expenses That's why NET counts and why I said your business isn't successful yet. It may be on a good path, but that's not enough for you to go around thinking you've got a successful business **yet**.

I just have to work harder.

That's the spirit, best of luck!

 

[Jimmy L]

What successful business would that be? You cant even afford 10k to pay off the debt.

Ride down from the pride horse and either work harder or work harder.

10K isn't a lot for a business I agree but quitting your job and being your own boss is successful alone. If the OP is making 6 figures on his business and having debt problems I'm sure he can add another 6 figures to his portfolio if he works hard enough. I can guarantee you most of this forum don't make 6 figures a year. Too me the OP has a successful business generating 6 figures in sales. His accountant probably sucks if he had to pay a big tax bill.

 

[b1step-ahead]

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!

go over to lending club and get a crowd sourced loan for all your cc debt. Start driving uber to service that loan and keep your im profits rolling to your business, income and savings. Keep your overhead low.

 

[natedogg]

If you're making six figures a year and don't work a 9-5 you are successful! You should use your cash flow to pay off your debt if they are business expenses. Start creating another website and flip it. By the way, a lot of businesses have debt and are SUCCESSFUL! I just got approved for a SBA loan so I'm in debt...

 

[b1step-ahead]

If you're making six figures a year and don't work a 9-5 you are successful! You should use your cash flow to pay off your debt if they are business expenses. Start creating another website and flip it. By the way, a lot of businesses have debt and are SUCCESSFUL! I just got approved for a SBA loan so I'm in debt...

Hey what's up man, what kind of sba loan did u apply for if you don't mind sharing, or pm. Thanks

 

[BMNY]

I'd suggest looking at your current business and seeing if there's any processes/parts you can automate or outsource to reduce expenses, maybe take a small amount and invest in some other projects that generate passive or mostly passive income. I do alot of stuff like this for clients and you'd be surprised at how much you can save by streamlining inefficient workflows/processes.

 

[natedogg]

Hey what's up man, what kind of sba loan did u apply for if you don't mind sharing, or pm. Thanks

Hey, I used smartbiz. I got a 8.25 interest rate. Be prepared to upload a lot of documents.

 

[b1step-ahead]

Hey, I used smartbiz. I got a 8.25 interest rate. Be prepared to upload a lot of documents.

Thanks man, I just bought a house, so I know what you mean about docs.

 

[suportxd]

Go for higher profit

 

[natedogg]

Thanks man, I just bought a house, so I know what you mean about docs.

Congrats my dude! How was it buying a home being self employed if you are? I been self employed for a couple of years but have my wife's income. I have plenty of income to show, I just hope they will take it once I decide to go for a home.

 

[b1step-ahead]

Congrats my dude! How was it buying a home being self employed if you are? I been self employed for a couple of years but have my wife's income. I have plenty of income to show, I just hope they will take it once I decide to go for a home.

It wasn't easy. But we did it. PM if you want details.