credit-cards_69.jpgYour first reaction when you hear discussion about Credit Cards and debt tells you that debt is bad and should be avoided. Well, credit cards or any type of debt are really just a financial tool, and when used properly, can be very beneficial.

For example, how many people could save up hundreds of thousands of dollars to buy a home with cash? It can be done, but it might take a few decades to reach that goal. Instead, by borrowing money you can use leverage to make the purchase now instead of waiting.

When you Apply for a Credit Card it is always advisable to search, compare and select for the right Credit card suitable to your needs. One of the most costly mistakes you can make with credit cards is getting into the habit of only paying the minimum amount due each month. While the minimum amount may be affordable; it will also cost you more money in the long run.It is easy to get into the habit of making only the minimum payments. They are low and it can free up cash flow for other areas of your finances. Unfortunately, paying the minimum can be very costly as demonstrated above. Even a very low balance can cost you more in interest and take over a decade to repay.

Compound this problem with multiple credit cards and higher balances and you can see why it can be so difficult to get out of debt.Credit cards do have their place in business just as they do in personal finance. They are a convenient way to make purchases and potentially receive cash back or other rewards. What you have to realize is that you should treat a Business Credit Cards just like you would a personal card. Only charge what you can afford to pay back, keep interest rates low, and make payments on time.

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When using a credit card issued by bank, the charges are deductible when charged. This is a big advantage for business owners. You can make a major business purchase at the end of the year and take the deduction in the same year even if the charge is paid in a subsequent year.This rule applies even if your business operates on the cash basis of accounting. However, this rule is only applicable for credit cards issued by banks. If you use a store credit card and operate on the cash basis, the items are deductible when paid and not when charged.