Managing Your Credit Card Debt

Credit card machine at check out counter in store. Images shows 2 hands one swiping a credit card in the machine on the counter.
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December 4th, 2016
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Did you spend a little too much on Cyber Monday and Black Friday? Did you put those purchases on a credit card? If you did, but didn’t read my blog last month about how to save on holiday shopping, then keep reading now.

Retail experts say Americans will spend more than $900 this year on holiday gifts. If you made your purchases with plastic, then there are some things you need to know when it comes to managing your credit cards.

  • RECONCILE YOUR STATEMENTS MONTHLY – Check your monthly credit card statements on a regular basis. This means checking your credit report as well. In fact, whether you have an in house bookkeeper or have an outside firm doing your books, make sure they are reconciling your credit card statements every month. Your bookkeeper should also make sure you’re paying that debt in full or more than the minimum to avoid high interest rates or late fees.
  • SET UP MOBILE ALERTS – If you don’t have a bookkeeper, do the books yourself, and do not reconcile statements monthly, then set up a mobile alert. Mobile alerts will let you know when you’re getting close to your credit limit. It will also alert you when fraud or some form of unusual activity is detected.
  • PAY OFF HIGH INTEREST DEBT – Carrying a balance on your credit cards could be costing you or your company hundreds of dollars, if not more, a year. If The Federal Reserve raises short-term interest rates next year, credit card percentage rates could go up too. So make sure you don’t carry a balance on credit cards with high percentage rates. If you do have debt, do your best to pay it down and pay it off.
  • GET A REWARDS CARD – Credit card companies are fighting for your business. Take advantage of offers for credit cards that offer you rewards. Some cards are offering incentives like travel rewards or free hotel stays. You may also want to consider consolidating your cards and moving the debt into a card that offers a short term, but low percentage rate, then pay off the debt asap.

Credit cards are effective tools for business owners who do not want to tap into their cash flow. But make sure you don’t carry over too much debt or rely on your credit cards if you don’t have the cash to back your purchases. In that case, stick to a budget and call the Brigade Bookkeeping Team. Our team is here to help business owners face any and all bookkeeping or business financial matters and to keep them under control. If you have a question about a better way to manage your company’s credit cards, call 786-275-0175 or email me; I want to hear from you.

Have a great week!

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