Bad Debts Provision?
Could anyone kindly backing:-A sum of lb1000 returns 2% interest. An appropriate Bad Debts for the business is 5.6%. 2% of lb1000 is lb20, 5.6% of a lb1000 is lb56. The lb1000 is loaned over 36 months. Is there any opening that the provision can be costed in such a style as to leave a proft outside edge? I ask because I'm costing a small money-lending business as a second income. Thank you.
Answers: sorry you lost me at could anyone kindly serve lol. But 2 % does seem a low interest rate are you sure i.e. right
Why are you lending at 2% and why own you decided 1 surrounded by 20 of yur debts will propbably go bleak? Your business is not profitable on these terms.
I owe $2,500.00 on credit cards. Would it be wise to use a credit card check w/low interest to pay off debt?
Answers: nope, that's not a solution.
depends on how many cards u got. get a personal loan and pay off your credit cards. keep a credit card which may be handy and others give it away to bank.
in aus, the loan amount is credited to a linked savings account, so in this case it is advisable to transfer the remainder funds after paying off cards back to your loan account so it saves interest being build up.
and later on gradually pay off your outstanding loan amount.
NO
never use those "checks", no matter how "low" the interest UNLESS that check is the ONLY item on the account.
**
the details of all credit card accounts always say that all of your payments shall be applied to the lowest rate balances first and the highest rates balances last.
so what happens is all of your payments are applied to the low rate transferred debt, while all of your current purchases and related items accrue interest at 30% or whatever the high rate is.
This 30% is almost surely much HIGHER than any other debt you'd likely pay off.
WORSE, it gets you into paying interest on new purchases from the day of the purchase. well, the merchant has already paid interest for about the first 45 days -- so you are paying the bank DOUBLE interest for those days.
you NEVER want to have any continuing balance on any card that you actively use for purchases. ALWAYS pay off such cards in full to avoid paying the bank this DOUBLE interest.
why? you are only digging yourself for more debt...
2500 is not that bad compare to alot of people
why not just try to pay it off
Best would be to write a $2500.00 check to pay the balance in full.
Other than that if the new credit card is lower interest than the one with the balance it will help you.
Just pay it off as soon as possible.
It depends. If you have a VERY high interest rate on one, and are getting a VERY low interest rate on the other, as a temporary measure it may be smart to do that. However, it must be stressed that this is only a temporary measure and you need to go back and pay it back.
The advantage of doing this is: You dont spend time paying interest and other fees, and get to paying the principal.
That would work, however...when you pay off that $2500 all money you pay will go towards that low interest amount. Any charges old or new will get the regular interest rate.
Read the fine print... best advice...Write the check...throw both cards away.
noo
use your tax money
Yes, but do your research. Check out other credit cards that offer a balance transfer with a low interest rate (often 1.9% for up to a year). Then it gives you a chance to work hard at paying it back with very low interest charges. Otherwise, you will be paying interest at as high as 19% on your credit card..you are throwing money away. If you can find a card that offers a promotional interest rate like that, more of your payments goes towards the actual balance, instead of interest. Also, most importantly, if you do this, take your old credit card that will then have a zero balance, and close the account, and cut up the card. Take the new card and put it in a safe place (not in your wallet). Don't carry it with you and do not use it until its been paid off. Otherwise you have to pay off the most recent charges first at regular interest rates, before you start paying the balance transfer with the lower rates.
Honey,
you are just going to be digging more holes for yourself.
2500.00 is not alot of money to worry yourself to death about, i am assuming you are still working, I would hold out on anymore credit card purchases/payments, and start paying off these cards one by one, which ever the minimum monthly fee is,, give a bit more than that to cut off interest/other fees.
It's january, if you could pay, say 100. a month you, could cut your debt by nearly half, and nearly all by this time next year.
I would not use a low interest cc, and if the company is going to check your credit anyway, how are you getting a low interest one? Will this one be secured, or non secured?
and there is always other fees, like late fees which will jack up your c-debt in no time if late, even if you have a "low interest cc.
honeychild
well that depends on a number of things:
How high is the interest on the credit card with the balance.
What is your credit limit on new card
Do they have a balance transfer fee and how much.
After the low interest promotional rate what will the interest rate be?
Do you even plan on paying the new bank back.
if not then its a waste of time and effort.
After reading all the fine print, the rational analysis might say that paying off one card with another is to your advantage.
However, please remember that it was not rational to carry a $2,500 balance in the first place. My concern would be that if you paid off the high interest rate cards, you would be tempted to start charging again. So here's my advice. It's strange, and you can do what you want: Destroy all your credit cards now (or hand them to your parents or a trusted person who's good with money for safekeeping). Then pay off the $2500 cards, always being sure to pay at least the minimum payment (and hopefully, 10-20% of your gross income to pay off the cards). When you get out of debt in a few months, you will have a valuable appreciation of how credit works, worth far more than any interest you might have saved. At that time, you can seek the lowest interest rate cards, but never carry a balance again. That's a bright future!
It would be wise to use cash to pay off debt.
I enjoy debt collections that enjoy be sold to other collection services. Does this extend the 7 year extent?
The orginial credit provider is showing on credit report plus the collection company whom account be transfered to. Will the transfered account holder stumble off account at same time of orginial credit provider at the 7 year mark.Answers: There are two time lines the first is per the Fair Credit Reporting Act derogatory accounts show for 7-years from the date of first delinquency which works out to 7-years and 180-days nought can reset this date.
Any account that shows after this date have passed can be disputed and will be removed.
The second is the statute of limitations and this varies by State and type of debt, this is the allowed time a creditor has to sue you within court. After this time line have expired the debts are considered time barred. Any sum made will restart this time line and surrounded by some States even admitting the debt is your will also restart it.
Spifiman is definitely correct!
It makes no difference how frequent times a debt was resold, it cannot restart the 7 yr reporting spell.
It should. After seven years I believe the statute of limitations has long-gone in most states.
Good put somebody through the mill.
I have communication for you, the only mode debts fall past its sell-by date your credit report is if the reporting company stops filing it on in that. So, you should do the responsible thing and rate yor debt. Then, it will come off your credit report.