Is Credit Card Debt Keeping You From Starting Or Growing Your Cleaning Business?
This got me thinking about all the people out there trying to start a new cleaning business, or wanting to invest in the growth of their cleaning business. Regardless of your situation, you need to have cash available to achieve your goals. But if you've got credit card debt and little or no savings, how do you expect to pay your bills and grow the business at the same time?
If you are currently in this situation, I suggest you listen to Suze and get your personal finances in order first, and THEN work on starting your business or investing more money in your business.
Here's how she suggests you pay off credit card debt:
First, you line up all your credit cards by the interest rate charged. Once you know this, you know which cards you need to pay off first.
Next, start making the minimum payment on all the cards EXCEPT for the card with the highest interest rate. On that card you'll pay extra - as much as you can possibly afford. Once you have that card paid off, you take the entire amount you've been paying on that card (including the exrtra amount), and start paying off the next highest interest rate card. Once you've paid that off you move to the next card and take the entire amount you paid on the first AND second card and apply it all towards the third card. And you continue paying the debt this way untill all cards have been paid off.
Once your cards are paid off, you then take all that money you were paying on debt and start putting it into a savings account. If you were paying $400 a month towards your credit cards, you can now put that money into a savings account and you'll have $4,800 in savings after a year, which should be enough to get you started on your investment into the business.
