How to use your credit card and credit wisely
By Mr Bankruptcy
22nd March 2023
Credit cards can be a debt burden for many people but, when used wisely, they can be a useful borrowing resource without your debt growing out of control.
These top tips will help you to use your credit card well while keeping control of the money you spend on them.
Steps for managing your credit card usage
The challenge with credit cards is that it can be very easy to incur additional charges on top of what you’ve already spent. Avoiding these costs is important for managing your credit card well so that you never have to pay back more than you borrowed. Here’s how to avoid unnecessary costs:
- Pay the balance of your credit card off each month to avoid interest charges on any outstanding balance.
- Avoid late payment fees by paying off your credit card bill on time each month. Set up a monthly direct debit payment that allows time for the payment to be processed so that repayment is automatic. Regular late payments can also see your interest rate rise.
- Don’t go over your credit limit, or you may be charged for the service.
- Don’t use credit cards for cash withdrawals as you are likely to have to pay a fee and higher interest rate.
- Be cautious about choosing to pay only the minimum payment each month; this could cost you more in interest payments in the long term. It also means you’ll be paying more than the original debt and you will see your debt gradually accumulate.
- Put a credit limit on your card that you feel is manageable for you to repay. Don’t get tempted to overspend by accepting offers of higher credit limits.
Apart from managing the way you pay your credit card, you also need to ensure that you keep your PIN secure, you check your bills regularly and you only use your card online, on secure websites, to avoid your card being cloned or used for fraud.
What if your credit card debt becomes unmanageable?
If you card debts are worrying you, it’s important not to ignore them, but also not to panic.
It can be tempting to look for other credit options to pay your credit card, and balance transfer to another card with 0% interest may be an option, but getting into more debt to pay off older debts can see your problems quickly spiral.
Get in touch with your credit card provider as soon as you realise your debt is becoming unmanageable. They will be able to explain all the options available to get you back in control, reduce your debt and help you to get back on track with using your credit card wisely.
James Rosa Associates
James Rosa Associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, our aim is to help people. We offer a full range of advice and professional services to individuals and business owners/directors who face unmanageable debt or who are involved in civil or commercial disputes. Our services include:
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.
6 Essential Reports Your Business Needs
By Brittany Fisher of financiallywell.info
15th March 2023
The most successful small businesses all have one thing in common — a wealth of data that drives daily decisions. Every day, you must consider how much inventory to buy, where to expand your business, and how much to invest in marketing. You can make more informed decisions when you base them on data — and the best way to analyse data is to compile it in a report. Consider the importance of the following six business reports, courtesy of James Rosa Associates.
1. Profit and Loss Statement
If you are applying for a small business loan or seeking funds from an investor, one of the first things you’ll be asked for is a profit and loss statement. This document details all of your business’s outgoing expenses as well as its incoming revenue. The report will document whether your business consistently turns a profit.
2. Financial Projection Report
Even if your profit and loss statement reflects reliable revenue, investors may want to see your projections for growth. The Business Professor explains that a financial projection report is ideal for this purpose, and it’s also important because it can help you predict your business’s tax debt. Your state may also require you to file a report annually in order to remain compliant. If you do not stay on top of your tax liability and file the necessary reports, your business may be fined — or worse, its licence may be revoked. You can use software to create realistic projections by plugging in your estimated expenses and predicted profits.
3. Annual Report
Your business’s annual report is another important document. It is typically the most comprehensive report that you’ll generate, and it may consolidate previous reports. It is published at the end of the fourth quarter, and it will provide detailed data about your business’s performance throughout the year. This data includes sales figures, an accounting of expenses, and information about funding. The report may also include information about marketing campaigns and the next year’s financial projections.
Something else to bear in mind: to make things a little easier on yourself, you can digitise your reports, making it easier to send them to various team members and potential investors. PDF files look the most professional but if you need to alter the file format, this tool may help by converting from PDF to Word in seconds. From there, you can make any necessary changes, then save the file as PDF again if desired.
4. Inventory Report
Businesses that sell a physical product must be attentive when it comes to tracking the costs associated with their inventory. Whether you manufacture your own inventory or you get it from a supplier, you need to create a detailed account of its cost as well as the expenses associated with storing and shipping it. The report should include data on what items sell the fastest, which items sell best in certain seasons, and other insights that will help you tailor your inventory to customers’ needs.
5. Marketing Report
Marketing reports provide valuable insights into your marketing performance, enabling you to optimise campaigns, engage customers more effectively and make informed decisions about future investments. You can utilise a marketing automation platform to get the data-driven insights you need to measure ROI, analyse effectiveness of campaigns and understand customer engagement patterns at every stage of the customer journey. This platform also allows you to automate tasks and personalise marketing campaigns.
6. Web Impact Report
According to WP Forms, only 64% of all small businesses have their own website. If you’re part of the 36% that doesn’t have a website, it’s time to invest in your online presence. A web impact report will help you see the benefits of a strong web presence, including boosts in sales and a wider reach to your target audience. Generate a web impact report that includes information on social media engagement, website traffic, newsletter subscriptions, and other web-based success metrics.
Make Informed Decisions With the Right Reports
Many small business owners are overwhelmed by the day-to-day responsibilities of entrepreneurship. Generating detailed reports about your business’s inventory, website, and financial health can actually ease this stress and offer a data-based roadmap for growth and success. And using a marketing automation platform can give you insightful marketing reports. In the end, you will see your efforts pay off.
Brittany Fisher has been a Certified Public Accountant for over two decades, with expertise in taxes, personal finance, and financial literacy. She founded Financiallywell.info, her own website dedicated to providing valuable insight and advice about managing money. Through her work, Brittany strives to empower individuals with the skills and understanding needed to make sound financial decisions – from budgeting and saving to retirement planning and beyond.
Pros and Cons of Debt Consolidation
By Mr Bankruptcy
6th March 2023
According to The Money Charity, the people of the UK owed just over £1,831 Billion at the end of November 2022, which, on average, is £1,394 per adult extra from the previous year.
With both debt levels and the cost of living increasing, many people are having to look for ways to reduce how much their debt is costing them.
Debt consolidation could be one option, but before taking action, it’s important to understand the pros and cons to ensure it’s the right path for you.
What is debt consolidation?
When you have multiple debts, on credit cards, store cards or in personal loans, you can arrange one loan to pay off all these individual debts, so you are then left repaying one, single debt, which can simplify your finances.
Pros of debt consolidation
Taking the step to consolidate your debts has several benefits:
- Reduces the risk of missing a payment, as it’s simpler to manage one single debt repayment plan.
- You may get a lower interest rate for one larger debt than for a number of smaller sums.
- It’s easier to budget when managing one debt, rather than varying repayments dates and interest rates.
- Better to manage one creditor than have several of them chasing you for payment.
- Consolidation can help you protect your credit score by keeping on top of one single payment.
- A single monthly repayment that may be lower than the combined sum of numerous, smaller repayments, so you may be able to save up money to pay off debt.
Some negatives to consider
Debt consolidation may sound like the obvious option but there may be some challenges:
- It may not be an option if you have a poor credit rating and can’t get a consolidation loan.
- You could end up paying back more, for example a lower monthly payment may cost more over the life of the loan.
- Additional fees may be incurred while you look for a new loan or transfer a balance between credit cards.
- If a consolidation loan request is rejected and you apply for several over a short period of time, this can harm your credit score.
- You may be putting assets at risk by using them to secure a lower interest loan.
- It doesn’t address the reason for your debt problem, which can build up again if poor financial planning or habits continue.
Look before you leap
Personal circumstances will affect how you manage debt, so take time to consider all possible option and seek advice before committing to anything if you’re not sure how it’s going to work for you.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors who face unmanageable debt or who are involved in civil or commercial disputes.
Our services include:
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you need to deal with an unmanageable debt, or bring a dispute to a swift and equitable resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk and ask whether you qualify for a free consultation.