There has been a lot of controversy over the problems with debt. Former bank employees are blaming the banking industry for its deceptive practices with selling credit cards and cash advances on credit cards. The bottom line is that people are responsible for their own debt problems. No one twisted their arm to incur debt. It all goes back to mankind’s basic nature of greed and lack of self-control. It’s like having an addiction to alcohol or drugs. Sooner or later it starts to control you.
Now is the time to review your money management and make a conscious decision to eliminate debt from your portfolio. If you are in the habit of buying things on credit, reduce or stop using the cards. Going back to the way you used to purchase merchandise before you had credit cards is helpful. If you do not need the item, do not purchase it.
If you must have it, save up enough money to buy the item with cash. This may require setting up a separate savings account specifically for this purpose. Be disciplined enough to deposit the money and do not withdraw it until you are able to purchase the item. This is going to cause a total change in lifestyle and may require patience on your part.
It is important for businesses to have access to funding when they need it. If your credit report is in order, you will have a better chance at receiving financing. If not, here is what you can do. (Click onto the Link above the picture.)
The Effects of the Subprime Mortgage Market
All the world has been watching, as the United States dollar declined in value and now, the two largest mortgage associations may be headed for financial calamity. Fortunately, these institutions are backed by the United States government. In the event of economic decline, the United States will step in to rescue them from financial problems.
Set up during the last Great Depression, Freddie Mac and Fannie Mae, acronyms for the Federal Home Loan Mortgage Corporation are secondary market lenders for retail lenders. The financial future of the banks, savings and loans, and credit unions are dependent upon the strength of Fannie Mae and Freddie Mac.
The New York Times reported today that President Bush has a plan to purchase stock from Fannie Mae and Freddie Mac in order to pull them out of their financial woes because of borrowers’ inability to pay back their loans. This is going to cost taxpayers more money. It has also been reported that “150 out 7500 small and mid-sized banks in the United States could fail,” (NYT, 2008). The industry experts are saying that this crisis is not as bad as the banking crisis of the 1980’s and 1990’s.
If you are concerned about your merchant account, you need to check to see what size bank is handling your account and act accordingly.
New York Times, (2008), New York Times, Analysts say more banks may fail, retrieved July 14, 2008 from http://www.nytimes.com/2008/07/14/business/14bank.html/?scc=48sq=&st=nyt
New York Times, (2008), New York Times, Bush offers plan to save fannie, freddie, retrieved July 14, 2008 from http://nytimes.com/2008/07/14/washington/14fannieweb.htm?scp=28sq=&st=nyt
Gail Cavanaugh’s Business Solutions
Should You Lease, Buy or Get a Free Terminal?
With the expenses in running a business, many business owners opt not to accept credit cards for their businesses, claiming that they cannot afford the expenses in leasing or buying a credit card terminal nor can they afford the expenses involved in processing credit cards. Because of the many opportunities to transact business with customers, and the competition for customers, business owners cannot afford to be without a terminal. There are several options to consider: one can acquire a free terminal from a reputable merchant service provider with an option to upgrade to a new terminal in one or two years. One can purchase a refurbished terminal at reduced cost or one can lease a terminal with the option for buyout of the terminal at the end of the lease. Any of these options would be a cost savings to the business owner and allow more cash flow for operating the business.
Many merchant services providers are offering the Hypercom T7P terminal for free. This terminal can process approximately 400 transactions per day, while the Nurit terminals can process up to 450 transactions per day. For most small business owners 400 transactions per day are adequate.
This landline terminal does not have wireless communications, nor does it have an internal PIN pad for debit card processing. Instead, the business owner has the option of purchasing an external PIN pad which can be purchased for as little as $150.00. Additionally, if the merchant chooses to provide check verification services, he can purchase a check reader and attach it to the terminal. Gift cards and loyalty cards can also be processed on the Hypercom T7P. It can handle multiple applications such as credit card processing, debit card processing, and check verification all on the same terminal, however it cannot handle credit card processing, debit card processing, check verification and gift cards all on the same terminal. In this case, the Nurit terminals are recommended.
Leasing a brand new terminal involves paying a monthly payment with an option to buy the terminal at the end of the lease period for a lump sum. For most companies, four years is the popular contract term. Monthly payments can be as low as $25.00. Lease payments qualify as an income tax deduction. The business owner will be able to operate the terminal for several years after the lease period.
Purchasing a refurbished HypercomT7P at reduced cost would be an option for a business owner who has limited cash. These used machines have a shorter life span, but may fulfill the short-term need for a terminal. For the business owner who prefers to pay cash in full rather than monthly payments over four years, this would be an option.
In conclusion, there are options to purchasing a credit card terminal when the budget is tight. If the business owner fails to act, he may miss out on sales.
Central Payment Corporation, (2008), Your partner for success, retrieved April 22, 2008 from http://www.centralpaymentcorp.com