Small Businesses Increasingly Resort to Surviving by Using Credit Cards

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Business IS picking up for sure, but during those two very hard years, lots of small businesses had to resort to using credit cards to stay in business. The challenge with credit card debt (as we all know) is the interest we have to pay; the fact that they are too easy to use - and the fact that a lot of people are just not good at managing finances.

Most small business owners are entrepreneurs - they have a great idea and off they go. Most take no financial advice and/or embark on any financial training whatsoever, and bit by bit get deeper and deeper.

Picked up these questions and thought they were a good 'test' of how well or not, we manage our finances:

  1. Do you pay interest only on your credit card each month?
  2. Have you bought consumer goods by extending your mortgage or using revolving credit in the past 2 years? 
  3. Do you regularly exceed your overdraft limit?
  4. Do you worry about your debt repayments?
  5. Have you borrowed from one credit card to pay another?
  6. Did you set up more than half your borrowings over the past 2 years?
  7. Do you take cash advances on your credit card/s
  8. Could you live without a credit card?
  9. Have you ever purchased any consumer goods via 'no interest for 2 years' ?
  10. Have you been refused credit in the past 2 years?

These questions can be quite a salutory home-coming. Yes the last two years have been hard, but if these questions have been a wake up call, don't forget there are many great budgeting services in most countries. Don't be afraid to ask for help.


Ann Andrews CSP
www.thecorporatetoolbox.com


About

Ann Andrews CSP specialises in working with high performing teams and showing managers how to deal with poor performance.

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