Refinancing your debts: The benefit of lower interest rates
Since you run a business, you’re always looking for ways to make a better profit and save money. The benefits of a business credit card may appeal to you; things like cash-back services and upgraded flights can be possible, but is this credit card really better for your situation? It can lead to mounting debts that you fail to pay off over time. If you’ve found that your business credit card has been used too much, you have a few options that your attorney can speak with you about.
First, you can choose to pay the minimum payments. This will eventually result in paying off the balance, but it will take a long time. Second, you can refinance your debts. To do this, you may get another card or a loan with a lower interest rate, so you can pay back less in total than if you stuck with the original debt.
If you’re thinking of refinancing as your main option, first consider if you’re going to be able to get a lower interest rate. If you know you can, then this could be a good option for you. However, if you can’t, then it won’t help to transfer the balance.
If you have multiple credit cards and want to consolidate, that can also work with a refinancing card. You’ll need to know you can get a high enough credit limit and low enough interest rate to make it worth it, though. Some cards provide a zero-percent interest rate as an introductory benefit, so that’s something to consider when you’re looking to reduce the overall debt you’ll pay back.
Source: Business.com, “Should You Refinance Your Business Credit Card Debt? Ask Yourself These 5 Questions Before Doing Anything,” Meredith Wood, Oct. 26, 2015