Monthly Archives: June 2019

Credit card industry unhappy with government’s plans

credit card firms from being able to change interest rates on existing debts while allowing the more expensive debts to be given priority when making payments.

However, a trade body – the UK Cards Association, has claimed that these changes would cause more people to fall into financial difficulty.ty.

In the UK alone, 30 million of us hold around 66 million credit cards.

According to the industry 62% of all adults in the UK had at least one credit card, but there had been a “gentle decline” in borrowing on these cards over the last 5 years.

Despite growing caution from lenders about who is approved for a card, the government is pushing to outlaw some practices that it deems as unfair and has warned the industry to “clean up its act”.

It is still awaiting responses to previous proposals published in October, which included:

changing the order in which debt is paid, allowing the most expensive debts to take priority, such as cash advances, enabling these to be cleared first
increasing the minimum monthly repayment amount tin order to speed up the rate of repayment, effectively encouraging debts to be cleared faster
making it illegal for providers to raise borrowers’ credit limits without their consent
restricting or banning increases in interest rates on existing debts.
The proposals come after new practices aimed at the credit card industry were brought in during 2009 as an attempt to bringing more transparency for customers through clearer terms and conditions.

But the industry showed a strident response regarding the latest plans through a 230-page report, detailing claims that customers would fail to benefit from many of the planned changes.

Melanie Johnson, a former Labour MP who chairs the UK Cards Association said: “These options would reduce competition within the industry.

“They would also have far-reaching consequences for customers and lenders alike and would change the basic ‘deal’ offered by lenders to their customers and lead to increased financial difficulties for many and to more defaults.”

The association has put forward its own version of the proposed package which it claims will protect vulnerable customers, cost the industry 250m a year.

One change it did agree with is how people paying off their credit cards should have the most expensive debt cleared first.

Insolvency experts have urged for the rules to be tightened up around who is eligible to sell store cards – a separate issue covered in the government review.

Trade body R3 said shop staff that have not received the correct financial training should not be allowed to sell store credit cards.

“It is frankly irresponsible to sell credit over the shop counter as though it is no more important than buying a sandwich,” said R3 President Peter Sargent.

“Without proper training, shop assistants are inappropriately qualified to understand the consequences of what they are selling and often commission-driven. While these cards are presented as innocuous, they can lure vulnerable people into debt.”

All responses regarding the new proposals are currently being considered by the Department for Business. “>The UK credit card industry tried to pour cold water over plans to curb lenders’ activities.

The proposals put forward by the Government include preventing credit card firms from being able to change interest rates on existing debts while allowing the more expensive debts to be given priority when making payments.

However, a trade body – the UK Cards Association, has claimed that these changes would cause more people to fall into financial difficulty.

In the UK alone, 30 million of us hold around 66 million credit cards.

According to the industry 62% of all adults in the UK had at least one credit card, but there had been a “gentle decline” in borrowing on these cards over the last 5 years.

Despite growing caution from lenders about who is approved for a card, the government is pushing to outlaw some practices that it deems as unfair and has warned the industry to “clean up its act”.

It is still awaiting responses to previous proposals published in October, which included:

changing the order in which debt is paid, allowing the most expensive debts to take priority, such as cash advances, enabling these to be cleared first
increasing the minimum monthly repayment amount tin order to speed up the rate of repayment, effectively encouraging debts to be cleared faster
making it illegal for providers to raise borrowers’ credit limits without their consent
restricting or banning increases in interest rates on existing debts.
The proposals come after new practices aimed at the credit card industry were brought in during 2009 as an attempt to bringing more transparency for customers through clearer terms and conditions.

But the industry showed a strident response regarding the latest plans through a 230-page report, detailing claims that customers would fail to benefit from many of the planned changes.

Melanie Johnson, a former Labour MP who chairs the UK Cards Association said: “These options would reduce competition within the industry.

“They would also have far-reaching consequences for customers and lenders alike and would change the basic ‘deal’ offered by lenders to their customers and lead to increased financial difficulties for many and to more defaults.”

The association has put forward its own version of the proposed package which it claims will protect vulnerable customers, cost the industry 250m a year.

One change it did agree with is how people paying off their credit cards should have the most expensive debt cleared first.

Insolvency experts have urged for the rules to be tightened up around who is eligible to sell store cards – a separate issue covered in the government review.

Trade body R3 said shop staff that have not received the correct financial training should not be allowed to sell store credit cards.

“It is frankly irresponsible to sell credit over the shop counter as though it is no more important than buying a sandwich,” said R3 President Peter Sargent.

“Without proper training, shop assistants are inappropriately qualified to understand the consequences of what they are selling and often commission-driven. While these cards are presented as innocuous, they can lure vulnerable people into debt.”

All responses regarding the new proposals are currently being considered by the Department for Business.

Is Bad Credit Keeping You Attached to Payday Loan Money

Do you know what is important to you? Many of us get trapped into thinking that we need so much when in reality much of it is unimportant. What we thought we couldn’t live without ends up in the back of the closet or in the garage waiting to giveaway or sell. How many payday loans online were used in the meantime to make ends meet, cover emergencies or even increase your purchasing power?

The need for alternative money is a result of bad credit. It’s not like you have never had a money problem before and went straight to a payday loan lender. These direct lending companies are often the last ditch effort to buy time to the next paycheck. The word ‘buy’ is appropriately used here as the money comes with a hefty price tag. If you were to look around your home once again, do you think you could find some of those important items you could have lived without? ?

When credit cards are used to extend buying power or to pay for every unexpected costs, it can equate to trouble if the debt is not quickly repaid. No credit check payday lenders are attractive to those people who suffer from bad credit. It isn’t an actual disease, but it might as well be considered one with all who suffer from it.

Credit challenged people suffer from:

* Low credit scores – These may be due to high debt to income ratio, late or missed payments, high credit card balances over an extended period of time, cancelled accounts or from not using third party money at all.

* Unbalanced budget – Their monthly needs outweigh their income. Credit cards are used to supplement income until there is no more credit left to spend.

* Outrageous finance charges – The debt these people do carry includes interest charges. It eats up much of the monthly payment. Affordable minimum payments never have the opportunity to make a difference in the total balance.

* Payday loan reliance – Once credit challenges end and credit card dependency sets in, people seek out alternative money opportunities. With no credit checks for approved status, bad credit is not an issue. This type of loan includes higher than average interest rates with shorter terms. It’s an expensive way to support a budget.

It never pays to have bad credit. You may have skipped a payment or delayed paying one on purpose just to juggle your funds around. It’s a poor money management skill that hurts personal finances in the long run. If your credit is important to you then it is time to change your budget perspective. Needing one payday loan is a sign for a change, Using 3 or 4 in a year says that your budget problems require a speedy recovery. If you are using the average 5-8 fast cash loans in a year’s time then you know your credit and budget are due for an overhaul.

Alternative payday loan money signals change. So stop buying things you may think you need now unless you will use them for years to come. The latest gadget or technology upgrade can wait. People have longed a long life with a lot less with money left over at the end of the month. Think about it before you increase your debt into a life of credit problems.

Spotya! Online Payday Loans promotes responsible lending and borrowing. We strive to provide some of the lowest fees in the industry. Visit Spotya! to find out more information on our company and payday loan practices.

Avoid Making These Mistakes With Your Capital One Card

A Capital One card is a safe and convenient way to pay for everyday purchases, often while getting cash back and other rewards for every pound you spend on the card. However, careless use of your credit card can get you into financial trouble very quickly, and you may find it nearly impossible to get out of deep debt when interest rates are adding up monthly.

Here are four mistakes that you should avoid at all costs when shopping around for or using your Capital One card.

1. Not doing your homework when you apply for a credit card. Credit card offers vary considerably. Some have high interest rates but no annual fees, while others have low interest rates but low credit limits. The key to finding the right card for you is to decide what features you need, and go from there. Consider these factors when shopping around for a card:

Interest rates. High interest rates won’t matter to you if you pay your balance off in full each month, but if you tend to carry balances over, you should look for the lowest possible interest on your new card.
Annual fees. Although fewer cards are charging annual fees today than in the past, some cards–especially those that offer rewards such as cash back or points–still charge an annual fee to help recoup costs of paying out rewards or offering other benefits. If you can afford the annual fee and the benefits of the card outweigh the fee based on your needs, then by all means, go for a card with an annual fee. However, if you’re generally strapped for cash or the benefits don’t outweigh the fee, steer clear of cards that charge one.
Rewards. If you’re going to have a credit card, it may as well come with rewards. Rewards cards come in many flavors, including allowing you to earn points that can be redeemed for travel or merchandise and cash back cards that give you a certain percentage back on purchases you make. However, if you don’t use a credit card often, rewards cards may not be your best bet, as the higher interest on these cards can negate any rewards you get.
Introductory offers. While you should never apply for a card based solely on the introductory offer, these offers are meant to entice new customers, and they’re often quite enticing. Some credit cards offer a lengthy period of interest-free spending, while others might offer double or even triple points on purchases for 90 days. Make sure the rest of the card features, such as the interest rate and any fees, are in line with your finances and your needs.

2. Paying only the minimum amount due on your Capital One card. Interest rates on credit cards are designed to make the credit card company lots and lots of money. Unfortunately, this often comes at the expense of consumers’ financial situation. Carrying over balances from month to month means that you’re paying interest on those balances, and interest charges can add up fast, making it difficult to get out of credit card debt.

3. Treating your credit cards as a second income. Just because you have a credit card doesn’t mean you can afford to use it to make frivolous purchases. The general rule of thumb is, if you can’t afford to pay for it next month, you can’t afford it. You will eventually have to pay back the money, and if you charge with abandon and without regard to what you can actually afford, you will find yourself in deep debt very quickly indeed.

4. Ignoring your credit card statement. Credit card companies make mistakes, and in this day of rampant identity theft, it’s essential that you check your statement each month to ensure everything is as it should be. If you see any charges that you didn’t make, or if you are being charged fees that you’re unaware of, contact your credit card company immediately.

Credit card debt Consolidation Assistance – Viable Mode To Eliminate Debts

If lenders concur simply then it will be valuable for you because you will have to pay out your loaned total on minimal charges of interest. If loan companies do not agree to adjust the prices of interest then consolidators will threat them through bankruptcy. At the stop the loan providers concur to give reduction on your excellent quantity in the shape of lower charges of interest.

In the consolidation procedure, you will have the facility to consider a new loan to spend the sum of smaller loans. In this way, you can effortlessly eradicate the challenge of paying several loans. This will be helpful for you and your business enterprise. Financial debt settlement is reliable different to filing bankruptcy. By adopting this approach you can get 50% to 60% reduction on your outstanding balance. Immediately after that, you can effortlessly run your company for your household devoid of facing any trouble.le.

Generally credit score card holders use this facility to get important elements of their lives. There is No doubt that this facility has brought a lot comforts for the men and women. It is point that typically people use substantial credit cards and at the stop they have to experience large troubles because of to it. Previous to getting cards, you will need to check out to get additional facts about the company’s concealed fees. This will be helpful for you in the long term. The purpose is that mostly credit card holders are baffled at the time of payment because of to doubled sum of mortgage. If you get far more necessary details about lending business agenda then you will be get absent from the misery circle of troubles. The authorities administration has injected many possibilities in the market place to give relief to the persons.

Credit card debt consolidation is a genuine system and has turn out to be much more preferred just after the government’s action against loans. In actuality this method is not ideal for every particular person. If you have mortgage of a lot more than just one loan provider then this procedure is the appropriate choice for you. In this plan, you can get further loans and can readily get rid of your modest loans. Just after that, you will have to shell out the installments of new loan. On the other hand, if you have huge sum in unsecured mortgage then debt settlement is the right decision for you and your full issues.

The Financial debt settlement program is a system which is working with additional than credit card debt consolidation. In this plan, you can conclude your troubles and can transform the design of your paying in minimal and manageable installments. This is the wonderful benefit for a shopper. The gurus of settlement firms negotiate with lenders and persuade them to get a discount on your excellent stability. Soon after getting some reduction, they will consult their charges from you. In this way, you can fix your problems in a legal way.

If you have about $ten,000 in unsecured mortgage then financial debt settlement is the right choice for you. This system has become significantly popular right after the government’s action. By adopting this system you can get up to 50% reduction in your spectacular sum.

Credit card debt consolidation assistance may possibly support you to get out of credit card debt. If you have undesirable credit score think about a bad credit score debt consolidation loan. You will be happy.

debt consolidation advice

Personal Loans Can Help You Out Of Debts And Bad Credit

Every time a purchase is made, you pay for it either in cash or by a credit card. Each credit purchase leaves behind a trail and this information is documented as your credit history. This credit history of yours is used to determine a lot of things about you. It is said to be predictive and it is also said to be one of the most essential things that anyone looks at before they extend credit to you or give you a loan. It is for this reason that it is utmost important for you to maintain a good credit record.

What is credit?

Credit is your ability to buy or purchase goods or things by promising to make payment for them at a future date. It is also the amount of money that you can borrow and that will need to be paid off at a future date. It is thus your borrowing capacity and this is extended to you by several banks or lenders who offer you a particular amount of credit based on their study of your financial data and credit analysis. Sometimes, though, due to repeated non-payment of debts as they fall due for reasons best known to you, you could face a bad credit situation. This is when bad credit personal loan lenders come to your rescue and help you get loans despite bad credit so you can pay off your debts.

What is bad credit?

There are instances when there is continuous and repeated failure on part of people to repay their debts as they fall due. Such non repayment takes its toll on your credit records and credit score. Also, too much of this situation can put you into a bad credit situation. This situation makes it difficult to not only pay back debts but also to obtain fresh credit to do it. This is the time you need to take the help of bad credit personal loan lenders who give you loans despite your bad credit. The loans they are ready to advance help in saving you from situations like foreclosure or bankruptcy. The bad credit secured personal loans are a good way of getting rid of your debts despite being in a bad credit situation or having a bad credit score.

More about bad credit personal loans

The rule is that it is the best thing to keep your credit rating in good order. However, in the instance when this has not been possible, it is essential to look for alternatives that will make it possible for you to get loans or borrow some money that can help you get rid of your debts. This is where bad credit secured personal loans come to your aid. You need some asset to be placed as collateral when you take out a loan like this. Anything, be it your home, your car, any other property or any other asset can act as collateral to secure the loan amount that is advanced to you.

Credit card balance transfer deals

With nearly 200 balance transfer offers on the market, you may be misled into thinking that you have an infinite choice. However, in the search for a new service provider to take charge of your account balance, there are two obstacles to jump. First, you can not transfer balances between cards supported by the same supplier, or is part of the same banking group. For example, it is not just MBNA issue its own cards, it endorses and Virgin Money Card Alliance & Leicester, the name of a couple.

Card are seeking funds for new funds, rather than recycling the balance between its brands.

Secondly, most of the offers are only available for new customers, so we can not afford to complete the circuit card providers too frequently. Typically your account should have been closed between 12 and 24 months before they can be regarded as a new customer.

75% of the balance transfer offers available today are offered by vendors of just five, with Co-operative Bank to take a slice of 26% and 27% MBNA. So effectively, while 45 cards brands offer the balance transfer offers, when shopping for a new pact of your choice is more than halved, limited to only 17 vendors.

It is important to check the fine print to deal with a balance transfer, and to determine who is the provider of credit at the same time for your new credit card and address, otherwise you may find yourself with a new card and transfer your balance or to be denied the accused at the normal rate.

Not only do you have to navigate through the maze of credit providers and banks to find the address for you, that the tightening of credit criteria you may also find it more difficult to be accepted or you are perhaps much lower offered a credit limit.

This time last year, we saw the beginning of a new chapter in the long march credit card 0% war which took the life of balance transfer door to new levels. However this year, the market has remained relatively calm, with the same contenders longstanding retaining their existing offerings.

All of this said, it is still worth investing some time to find a competitive home for any existing balance, especially considering rates have increased in recent months and this is expected to continue in 2008.

On average, the rate of purchase is currently about 16%. By providing a 0% deal for 12 months (assuming you made a minimum repayment of 2% / 5), you could save up to 140 interest on a balance of 1K. And if your budget to pay off the balance of 0%, then the interest savings is still 64.

But you have to consider more likely to suffer a tax balance transfer. The average is now 2.56%, and 96% of these costs are uncapped.

Virginia writes for the Virgin credit card. Thevirgincreditcard.co.uk is still one of the best UK credit cards and offers 0% on balance transfers. The Virgin credit card could be the perfect solution if you have other credit card balances to transfer. Get 0% on balance transfers for 20 months! With the Virgin credit card, you could get an instant decision today!

Automobile Brand Loyalty Important Factors And Why Porsche Is A Reliable Luxury Brand

If you’re in the market for a luxury vehicle, a certified pre-owned Porsche is a good choice, as evidenced by the fact that owners of new and used Porsche vehicles demonstrate brand loyalty.

In a recent JD Power & Associates survey, the Porsche 911 was the top ranking model, as determined by the number of reported problems per 100 cars. This kind of dependability is common in new and used Porsche models. Porsche drivers also appreciate the powerful performance and luxurious driving experience that a new or used Porsche delivers.

However, not all brand loyalty is based in such practical reasons. The 2012 New Luxury Vehicle Loyalty study, from Polk and AutoTrader.com, asked brand loyalists why they stay dedicated to a certain automobile brand. According to respondents, the most important factors in brand loyalty are:

-Brand Affinity. (44% of respondents Brand Affinity as the top determining factor in brand loyalty.)

-Quality/Reliability, as cited by 33% of respondents.

-Driving Performance (24%)

-Price/Finance/Value (16%)

-Styling/Design (16%)

An interesting corollary of this study is that brand loyalty motivations shifts according to the brand at hand. For instance, Acura drivers list innovation and technology as one of their top five reasons for brand loyalty. In contrast, Cadillac owners cite Brand Affinity more frequently than any other group of drivers. For BMW drivers, Driving Performance is the top reason for brand loyalty. Mercedes-Benz and Lexus owners reported that dealership loyalty is most important to their brand loyalty.

Car manufacturers track brand loyalty very carefully because it guarantees they will enjoy a steady stream of return buyers.

That same set of research results from Polk and Autotradrer.com found several explanations for why luxury car buyers switch brands.

The Main Reasons Why Car Buyers Switch Luxury Vehicle Brands

1. Price/Finance/Value (24% of surveyed car buyers)

2. Size/Body Style (20%)

3. Brand Affinity (17%)

4. Time to Change (14%)

5. Driving Performance and Styling/Design (both cited at 13%)

These are the reasons why a loyal Cadillac man might switch to a new or used Porsche.

How Age and Gender Impact Brand Loyalty

Age and gender demographic splits demonstrate significant differences in brand loyalty. For instance, considerably more women (17% of women compared to 11% of men) remain dedicated to a luxury brand because they feel loyalty to a certain dealership. In other words, a woman is more likely to continue driving her new or used Porsche because she loves the welcome she gets at her local Porsche dealership. Women appear to value vehicle safety more than men as well – 10% cited safety as a factor in brand loyalty, as compared to 5% of male respondents.

Age also influences brand loyalty. Brand affinity is important among those who are older than 55 years of age. 47% of 55+ respondents rated affinity as important, versus 37% of those younger than 55. Quality and reliability are key for younger drivers, 54% of whom cited these factors as important to their brand loyalty. In contrast, just 31% of drivers over 55 cite quality and reliability when explaining why they stay loyal, according to the Polk/Autotrader.com study.

Clearly, several factors drive automobile brand loyalty. For a reliable, fun car, you can’t go wrong with a used or certified pre-owned Porsche. Call your local Porsche Dealership to learn about their available inventory of new and used Porsche vehicles.

Bad Credit Personal Loans The Best Way To Get Approved Online

What is the biggest financial debt any of us is possible to cheerfully accept? It is a loan, a debt that regularly reaches over $200,000, but exclusive of which we cannot secure our relatives. For lots of financing borrowers, the opening to protect an insistent deal are small, but appreciatively, there is forever a possibility of receiving bad credit personal loans. How is this achievable? Well, as with each loan, achieving loan approval fall to the potency of your plan more than the status of your financing. For example- is a likeness of past refund way of life, and lots of lenders give the sense of being upon it as so. While it comes to giving way finance receiving, there are other factors that take priority over a credit ranking score. And, it is for this basis, present a loan plan – even with finance – can end blissfully.

Bad Credit Financing, And Why It Is A Negligible Feature

The biggest fault that candidates make is to consider that their history of credit ranking is the explanation to getting receiving. What this implies is that receiving bad credit personal loans with financing is always a possibility. However it would be similarly wrong to consider that money can be disregarded finally. This is since if the interest rate charged is high sufficient, then the installments will likely become too elevated to be deemed reasonably priced. It can come as no revelation that affordability is a type issue in achieving loan receiving. Get instant bad credit loans providers would like to put the low scores in their proper circumstance, which indicates that they need to see how the ranking was considered. This indicates they will check out your financing (in great detail), but showing an improved circumstances – possibly a new job, recently payment some current financial obligations etc.

Increase Your Arrangement

Regardless of having a minor pressure more events, it is glowing value creation progress to increase your financing. It fact in spite of all, assist to lower installments and, thus, make giving method bad credit personal loans a modest more convincing. There is only one method to get better a financing, and that is to observable current financial debts. What is more, it requires some time to accomplish this, and so some suspicious pre-planning is necessary. Attractive out a loan consolidation makes the task simple, let for all financial debts to be paid off in one go and present a possibility to lower the range of the necessary installments. This kind of debt reform can considerably assist in get loan receiving as by business out current financial debts, the financing progress. And with the total financial debt efficient during loan consolidations, a lot of extra money is free up to utilize to in any loan installments.

Other Traditions To Progress Approval Probability

Therefore, other than improving the finances, what traditions are there to get better the probability of getting a plan for Bad Credit Personal Loans Approved? Well, it is essential that the correct impression is given to the belongings mortgage lender. The most excellent impression is to prove a large responsibility through the assurance that comes with borrowing such large amounts of money. Payments time to save a large down payment is a good way to get that message across. If a payment of 20% can be made, it indicates the size of the required bad credit loan is reduced to 80%. Any more progress that can assist in obtaining loan approval is to look for a longer finance term. These specify the possessions finance main is separated into more but smaller shares, so lowering the amount of the installments.

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Five Huge Advantages To Credit Card Processing For Small Businesses

With the right product or service, even the little guy can take on his competitors and win. But in order to compete against the big guys, the small business owner needs to be able to offer customers the same conveniences other merchants are offering. One of the biggest conveniences you can offer your customers? Accepting credit card payments. And with the development of merchant accounts, that step is easier than ever.

As a business owner, you can establish a merchant account through a bank, credit card company or other payment processor. There are three types of merchant accounts to consider:

Retail merchant accounts charge the lowest transaction fees, but are often restrictive. If youre a retail merchant, you will pay a high percentage of your credit card sales and the card must be presented and swiped through a credit card terminal. These are best for bricks-and-mortar operations like a hotel, restaurant or grocery store. They are not designed to process payments through the mail or online.

MOTO merchant accounts which stand for Mail Order – Telephone Order accounts are used by merchants who sell their goods through the mail or over the phone. The merchant enters the customers credit card payment information into a terminal installed on a personal computer or a Web browser on a payment service providers Web site. MOTO accounts charge a higher transaction rate than those of a retail merchant account.

Internet merchant accounts work similarly to MOTO accounts, but are used, obviously, by those with an online business. The merchant uses a virtual terminal or payment service gateway to process the credit card order. These payment service gateways are part of many business Web hosting packages.

As a small business owner, you need to explore which merchant account is right for your business and find the company that is the right fit. Look at the fees you will be charged on transactions, ask questions of the company and ask others in your line of work which account they chose. You will be paying money to use the service, so make sure it fits your needs.

Some small business owners may still be struggling with why they have to accept credit cards. After all, they must pay a processing fee every time a customer presents plastic for payment. Here are five big advantages for business owners who accept credit cards:

1.In the long run, you will make more money by accepting credit card payments than you will pay in processing fees. Studies confirm that when people can pay with a credit card, their orders will be larger than if they paid with cash. One study by renowned accounting firm PricewaterhouseCoopers estimates that the average credit card order is up to three times higher than orders paid for with cash or by check. Customers online and in store fronts want to be able to pay with a credit card and they will reward your coffers for the privilege.

2.Merchants and customers will experience real-time processing. Transactions are completed automatically and instantly. If time is important to your business, this can be a real boon. The transaction is done and the product and service (or the receipt for product or service) is delivered within minutes. If, however, your business involves offline sales meaning you do not deliver product or services over the Internet you may prefer deferred processing. This allows you to review orders for accuracy before charging the credit card and shipping. And if your online system goes down, a deferred system will not hold up sales because the customer wasnt online waiting for confirmation.

3.Credit cards are not just a convenience for customers. They are also a convenience for the merchant who can technically stay open for business 24 hours a day, seven days a week. If you operate your business out of California, a client on the East Coast does not need to wait three hours for you to wake up in order to place the order. Its ordered and paid for before you even got out of bed.

4.Credit card processing can mean fewer trips to the bank for deposits or to resolve bounced checks. You no longer have to wait to see if the check will clear because your payment is usually guaranteed by the credit card company.

5.Enlarge your customer base by adding an online component to your business one that receives payments through credit cards. Even if yours is a local shop, you ought to have an online presence. With the right tag words, your site may be the first one to pop up with the merchandise sought by someone across the country. That customer does not have to come to your store to pick up and pay for the product and you, the merchant, have just enlarged your customer base.

Is Paid Credit Card Payment Protection Only For Those That Don’t Need It

It’s the quandary that people in debt face every day: How do I spend as little as possible on debt and still manage my risk? Lenders might offer a person taking out a credit card extended credit card payment protection for a small monthly fee, but people may feel they don’t have the spare cash to spend on securing a balance. In their mind’s, paid credit card protection is for those people who are rich enough not to need it, because they can afford the additional cost of carrying it. However, this type of thinking is exactly the opposite of what should be going through someone’s mind when they’re offered payment protection. Instead, they should be weighing the risk of defaulting on debt more than the cost of the small monthly payment used to make sure they can continue making payments if they get ill or are made redundant in their jobs.

How the rich might weigh the risk of not carrying payment protection

First, rich people would figure out how much of a balance they typically carry and whether they have enough savings to cover the balance should they suddenly lose their business or get seriously ill. If they are already carry disability or life insurance, this might help in the case where they were suddenly diagnosed with an illness or suffered a major accident. It would not help them if they lost their business and the associated income. For that they would need to rely on their savings or investment accounts to help repay outstanding debts.

Or, rich people with huge outstanding balances may decide that claiming bankruptcy would be the better option if their hope of repaying their debt in a few years is miniscule when compared to the size of the debt. For those that don’t have the option of a large bank account or business investments to cover an outstanding credit balance, the paid credit card payment protection can offer some peace of mind when they lose a job or get sick or injured. This is much truer for someone who is depending on an employer and a healthy economy to keep from being made redundant. Business owners might decide that claiming bankruptcy makes more sense.

When bankruptcy is not an option

If your livelihood depends on being able to work in your profession, it may be a very bad idea to file bankruptcy to get rid of credit card debt – even if your business fails. Bankruptcy in the UK can bar certain professions from practicing if that individual is declared bankrupt by the courts. In such cases, a payment protection plan can offer some peace of mind that debt payments will be made and creditors will not force that individual into bankruptcy through non-payment. This will give them time to work out an individual voluntary arrangement to resolve all the debt without a bankruptcy declaration. This can not only save their credit for a time, but also save their potential earning power for the future when thing might be a whole lot better.

Other risks that demand that you take out credit card payment protection

Other types of risks that can help you decide whether you should pay the monthly fee for extra credit card protection is whether your loss will affect more than yourself. It may be one thing to lose a credit rating, but quite another if the loss of a job or an unexpected illness also puts your family at risk. If you can cover a mortgage with unemployment benefits for a period of time, but not the additional credit card payments, then you might want to consider taking out extra credit card payment protection. If you happen to be made redundant through no fault of your own, the benefits can mean that you will be able to keep your family fed and housed, even while maintaining a good credit history. This will undoubtedly help you if it takes a bit of time to find a new job or if a job offer is dependent on a good credit history. It can also save you from having to dip into retirement or investment accounts to make up the difference. When the risk of non-payment affects more than just you because you are the primary bread-winner, it makes sense to add extra protection to your accounts to keep you solvent even when things don’t go exactly as you had planned.