If you are wary of the idea of financing your small business with your credit cards, you should be.  In fact, you should be cautious about financing any large expense with a credit card, whether it pertains to your personal or professional life.  There’s simply no denying that credit cards often come with relatively high interest rates, which can double (or more) if you fail to pay on time.  That’s definitely a cause for concern.  That said, there are actually some instances in which using credit cards to further your business goals is not only okay, but actually preferable to other options.  Like any other type of financing, there are both benefits and drawbacks to this particular avenue of funding.  But as long as you know when and how to use your credit wisely, you can avoid the pitfalls and gain the advantages of financing via credit cards.  Here are a few things to consider.

1.  Credit rating.  A poor credit score for your business can spell serious problems should you need to borrow money.  These days, many companies just need a boost to see them through the recession.  But because of the lending crisis (which landed you in this precarious position in the first place), most banks have become more careful about who they lend money to, which means you might be rejected over and over again, regardless of past history or your ability to make monthly payments.  In this case, a credit card company could provide the cash you need now.  Just make sure you are aware of both terms and penalties before you enter into such an agreement.

2.  Interest rate.  The prime has been held artificially low as a way to encourage businesses and individuals to take out loans, but it’s a moot point if the banks aren’t willing to lend you the money.  And while you could opt for merchant cash advance, the interest on this type of loan builds alarmingly fast (you could end up paying as much as 300% by the time you’re through…ouch).  However, if you start with good credit, you might have a credit card with an interest rate as low as 7-9%.  Obviously, it’s not as good as a bank loan for half the interest, but it’s certainly an option to consider.

3.  Monthly earnings.  This could be the determining factor in whether or not you opt for credit card financing.  Even if your monthly earnings are high, you might not have quite enough cash on hand to pay for a large, one-time expense.  In this case, using a credit card could provide an ideal solution.  You’ll be able to make a repair or a big-ticket purchase and easily meet the monthly payments down the road.

4.  Scope of expenses.  If your needs are small, a credit card could be the answer.  Suppose you need office supplies, you’re traveling to a convention, or the AC unit needs to be repaired.  You may not have the money to spend on these relatively small expenses now, but you’ll likely have it by the end of the month.  In short, if you can use your card and pay it off before you start accruing interest, it’s certainly a better option than going through all the paperwork to get a loan.

5.  Other options.  If you have better options for interest rates and repayment, you should probably take them.  You may be able to get venture capital if you meet the proper requirements; generally, you must be a fast-growing company to qualify for this type of funding.  Or your friends and family might be willing to lend you money (and they’re bound to be more lenient than other creditors).  And you can always take on partners.  But if your options are limited, you need a little cash, and you’re fairly confident about your ability to pay it back quickly, there’s no reason you shouldn’t use credits cards to meet the needs of your business.

Emma Martin writes for Totally Money where you can find information on financial products and browse through important information like poor credit loans.

If you’re in debt, you know how intimidating the thought of paying back your creditors (with interest) for years can be. Whether you have considered filing for bankruptcy or you have been financially advised to do so, it is best to thoroughly research your options and the effect your actions will have on your credit score and subsequently, your future. While bankruptcy can give you a clean slate by wiping many of your debts out, it is likely that your credit will be affected for a period of time depending on what type of debt situation is being excused.

The first thing you should consider when thinking about filing for bankruptcy is whether it will help your particular situation in the long run. Although it may seem like an attractive option, in some situations, it may be more harmful than helpful. With this in mind, it is best to explore other avenues before solidly committing to filing for bankruptcy.

A few preliminary strategies that you may find beneficial include financial counseling or speaking personally with your creditors. It is in your creditors interest to be paid the money they are due, therefore in order to protect the reputation of the business, many will elect to work with you on a repayment plan rather than send your file to collections.

Scheduling an in person meeting with the accountants of your major creditors may yield unexpected results. In some cases this strategy may not pan out, however, it is likely worth the effort if you can work out a payment plan. Additionally, loan counselors may be able to assist you in further exploration of your options before filing for bankruptcy, help you devise reasonable repayment plans, or if necessary, determine that it is a good time to file for bankruptcy.

One of the reasons that you go through the process of this preparatory consideration is because (depending on where you live and the extend of your debt) bankruptcy may be evident on your credit report for approximately 10 years and in some situations, it does not excuse every debt.  Ultimately, this makes it much more difficult for you to establish your credit and you may not be able to take out a loan, since your credit rating will be heavily effected by this action.

In some cases, however, declaring bankruptcy may improve your credit score. This is especially true for those who are so deeply in debt that they have a negative credit score to begin with. If you are able to wipe the slate clean and take some time to devise a plan on how to maintain positive cash flow without overdrawing your reserves, you may be able to make a fresh start and establish good credit after bankruptcy.

Filing for bankruptcy will effect your credit, one way or the other, and the consequences should be seriously considered, however, there is life after filing for bankruptcy. If you feel you can establish a better reputation after filing for bankruptcy, it may be a good option for you, however, all of your financial decisions must be grounded in reality. It is totally possible to raise your credit score, but you will need to decide whether the best way to do that is by making steady payments to your creditors or trying to re-establish yourself with bankruptcy as part of your credit profile.

Emma Martin writes for BluWiki where you can find Old Country Buffet Coupons and Depend Coupons.

In the aftershock of the recent recession, it is likely that many will find it difficult to find, change, or otherwise procure employment. According to the Bureau of Labor Statistics the unemployment rate has been fluctuating by approximately mere tenths of a point since the beginning of the year, while the average hourly earnings are seeing small monthly increases.

In this economy the most informed life decisions should be made according to where you are in your professional life. Say you have several years of experience in your trade of choice. You are probably in a good position to expect reasonable pay, however, switching employers may not be a sure thing.

Although many employers seek experienced candidates, it is evident that the market is still saturated with the unemployed, many of whom weren’t lucky enough to retain their jobs through the recent economic plunge. With a lot of talented unemployed candidates in the job pool, this may be a better time to consider either sticking with your current position or getting that college degree to add to your competitive edge.

Alternatively, you may be fresh out of high school and thinking about your next steps. While starting a job out of high school provides a good respite from the academic experience, you will eventually want to consider where that job is taking you. If you like what you do and there is some likelihood that you will have room to grow and succeed professionally, it may be the place for you. However, the drawback of this situation is that you may hit a glass ceiling at some point where you can no longer proceed without a degree.

Additionally, there is an element of uncertainty in any situation like this, where others may be promoted above you. If you are prepared to exercise patience and act with confidence, sticking with a job that can turn into a career may be the correct path, otherwise you may want to consider a degree.

Going to college is bound to be rewarding so long as you have a clear idea of what you want to do with your degree. The potential debt that taking out loans will cause you won’t be worth it unless you have defined plans on how you are going to pay it back.

Whether you are considering an associate, bachelor, or master’s degree you want to think about the amount of debt you may incur as a result.  Without doing an in-depth cost-benefit analysis, you can assess your projected financial situation by going to a site like mappingyourfuture.org. The budget calculator function of this site allows you to take into account both assets and liabilities you may have during a typical year living as a student. This gives a realistic idea of how much money you should expect to need to live on during school. The pay wizard option also gives the potential student a good idea of what their loan payments will look like for after college and helps assess how much money should be borrowed.

Emma Martin writes for Go College where you can find helpful information on graduate fellowships and learn how to write a college admissions essay.