0% Interest Credit Cards - Ways To Maximize The Benefits
can then maximize their usefulness.
Around the turn of the millennium, interest rates were at one of the all-time lows. By 2002 Government loans in the United States had fallen below 1%, and as such consumer lending rates followed suit. As such it became almost second nature for credit card companies to then provide 0% interest cards as a very attractive alternative to what was currently available at the time.
Right now at the end of 2009 we see a different financial situation altogether, but still the 0% credit card is available from credit card companies, albeit not nearly as much as it once was. Credit card companies still need to remain competitive in a highly competitive financial world, so the 0% card will never go away, which is good news for the customer.
To maximize the effectiveness of 0% APR credit cards, there are a few things that you must know:
Limited Time Offer. 0% interest credit cards tend to be offered from 6 to 12 months, although occasionally
for up to 18 months. There is a well known saying - good times never last. How true it is. Anyway, with
this type of offer, it means that anything you charged to your card during the time will not accumulate
interest. Say if you purchase $4000.00 worth on a 12 month interest free card, you can make twelve
payments over a period of 12 months of $375 interest free! You can keep earning interest on your savings
and let the credit card company do the funding for your every purchase!
Transfer Balances and Consolidation. Like many 0% APR offers, this type of card will allow you to transfer
your balances from your existing credit card to your new card and waive transfer fees. So if you owe $3000
on your current credit card and are paying 19% interest on your balance, you could save nearly $600 in
interest payments alone within 12 months!
- Do pay off the balance: on the conclusion of the interest free period, try hard to pay off the balance. Obviously if not then you will very quickly undo all the benefits gained in the past few months of interest free use.
Its obvious then that if you make regular purchases or wish to transfer a sizeable balance from other cards or bank loans, the 0% interest credit card has a very important part to play in your financial planning. I suspect that this form of credit card will again be amazingly popular with lenders, so take time to assess what is available and gain from all the benefits to the fullest!
Xero - Third Generation Accounting Software
Hi Guys,
Just thought I'd summarise for you the benefits of Xero as the latest in business accounting software technology…
Whilst second generation software has been useful in the past, this software generally has required a relatively complex level of understanding of accounting and thus has generally been targeted at accountants as opposed to business operators without an accounting background or the time to focus on administrative tasks.
So, given recent developments with the internet you will understand that recently my preference has changed to online web-based applications (such as Xero) as I see this is where the future is leading us. This makes sense, since it is cheaper for supplier companies and allows a greater number of web based users access to the same data file (unlike PC based applications).
Xero is a third generation (internet based) software which has recently been developed by Sam Morgan & Rod Drury and allows you to download transactions faster than second generation software packages. Xero is a Kiwi developed software which is branching into Australia & the UK. It is listed on the NZ stock exchange and has offices in the Old BNZ Building in Custom House Quay. Xero is a recognised partner with the New Zealand Institute of Chartered Accountants.
Key advantages of third generation software such as Xero are:
- It's Web based as opposed to PC based, which means you the business owner and client have the freedom to control your records (not exclusively your accountant or bookkeeper);
- If you have a number of staff or users accessing the accounting records they can do so from their own computer(s) at any given time from anywhere on the internet without the need for multiple copies;
- Xero has a number of graphical representations which many PC based accounting software programs do not;
- Your accountant can also update and guide you on the same data file should you have any questions;
- Bank Feeds are automatically imported into Xero from your Bank's Website and the details memorized (saving you time);
- There are not multiple upgrades which you have to subscribe to each year as you do with PC based programs;
- Many PC based accounting packages have no security limits protecting the integrity of your business financial information which in my experience as an accountant for small to medium sized business owners has resulted in many hours rectifying common errors in basics such as bank reconciliations or classification of business expenses. Xero has this capacity and so saves you the business owner many $$ of wasted accountants' fees which you would otherwise have paid had you engaged an accountant using a PC based software; and finally but most importantly …
- Bank Reconciliations and customer invoicing is a breeze!
The last advantage is of particular benefit to clients in that it has been my experience that one of the reasons accounting fees can sky rocket is due to the fact that the bank has not been accurately reconciled. Clients have even reported that they have had increased cash flow through more frequent invoicing!
There are several alternative pricing packages depending upon whether you are GST registered, a non-profit organisation or simply wish to maintain a cashbook ranging from NZD10 plus GST per month through to NZD49 plus GST per month.
You have the option of a basic cashbook through to a full suite including accounts receivable, accounts payable, inventory or departmental tracking. If you would like to know more about Xero, or would like to purchase your own package don't hesitate to email.
So, why not look into automating your business online using the latest in today's business accounting software technology, Xero. After all, the days of a "David & Goliath" fight against a highly automated tax man with a prehistoric accounting system has long gone! Do yourself a favour, use a more effective system to fight for your business. You can find out more about it by referring to my blog on http://www.youraccountantrecommends.com.
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