One of the keys to success in this day and age is to minimize/eliminate your debts. Oftentimes, businesses and people fail because, when they finally think they have reached their goals, they realize that there is an elephant in the room called debt, which they have accumulated to get to this point. Their next years is spent paying back these debts instead of thriving. Borrowing money is fine especially when starting a business. However, it is important to identify ways of minimizing these debts so that you may find your path on the way to financial freedom.
Credit cards with low interest rates
There are a few ways you can try to make your way out of high interest rates. Often a simple phone call to the issuer is all it takes to get a reduced rate, provided that you have good credit and you are a long-term customer who makes payments on time. Some companies also offer advantages to their employees like lower interest rates on credit cards offered by banks they partner with. Do not hesitate to tell your bank if you’ve been approached by a competitor proposing a lower interest rate. This might be all it takes for them to make a better offer!
Borrow from friends and family
If you prefer borrowing with no interest rates at all, borrow from friends and family! This is a great way to get some cash to start your business or invest without the stress of having to deal with interest rates. You can always pay them back in goods and services at a lower price from your company. Many startups think that starting big is the way to go. However the are many ways to start with very little money
Benefit of the points and rewards system
Many credit cards nowadays offer points and rewards on purchases made. While this is great, it can also be tricky if you do not know how to manage properly. No need to accumulate more debts while trying to get a reward. My advice to you: When you have the cash available for a purchase, pay it with your credit card then pay it back right away. This will allow you to accumulate points while staying debt free. Then you can change these points into cash to payoff other debts! It is a win-win situation.
Do not purchase unless it can bring you more money
See all of your purchases as investments. Before buying equipments or hiring an employee, ask yourself if this will bring in more money to the company. If the answer is NO, then do not purchase. If you are unsure, seek counsel in order to make the right decision.