Beginners Guide for Business and Financial | Thesecretmeeting.com

Credit cards are a big responsibility. When they are used improperly, they can disrupt your future financial solvency and cause you other cash flow problems. The more you know about credit, the more likely you will use this powerful tool wisely.

Nevertheless, credit card users nowadays are making a giant leap from the typical shopping experience to a cashless shopping extravaganza. It is very easy to get in over your head with credit cards.

With the endless shopping convenience that credit cards can bring, more and more people are encouraged to get credit cards and use them to the maximum amount of the credit line.

However, many people are reluctant to explore other credit card choices. That is why, in spite of the credit card’s popularity, credit card companies have had to incorporate enticing promotional tools that will hook customer’s interest to apply for a credit card.

Among the many credit card offers dominating the industry today, 0% annual percentage rate (0% APR) is the most common. Many credit card users see this as enough of an incentive to make the switch to another credit card.

By definition, an annual percentage rate refers to interest rates that are paid on purchases. The APR is expressed in a standard format to allow comparison between credit cards. These interest rates are reimbursement to the issuer of accrued expenses, in order to make the loan to the borrower and other fees required. As you might imagine, there must also be some profit for the issuer as well.

Normally, 0% APR is provided during an introductory period by credit card issuers. After that time , any balance on the card would accrue interest until the debt is paid off.

The Concept

In an average credit card, annual percentage rate charges range from 6 percent to as much as 30%. Understandably, people would prefer credit cards with lower annual percentage rates (APRs).

This could be a daunting task for credit card companies that are not well established to keep up with the competition. Hence, they try to find another way of offering the same promotions, but with a new or different twist.

This is when 0% annual percentage rate comes in.

Credit cards with 0% annual percentage rates are the most popular. However, one should clearly remember that 0% annual percentage rate does not last forever. In most cases, this offer lasts only for about 6 months. This is known as the introductory period.

Credit cards with 0% APR work best for people who transfer their current balances on other credit cards to the new credit card. Through debt consolidation, 0% annual percentage rate works for the borrower by cutting back monthly interest expense. It can also save time for the borrower by making only one payment per month. The best approach would be to try to pay the balance by the end of the introductory period.

Statistical reports show that most of the charges that consumers pay are focused on interest rate charges alone. The average interest rate that the credit card owner pays is 18.9%. Keep in mind that late charges can be charged if a payment is received by the credit card company even one day late. This late fee can increase your expense, and ruin an otherwise good payment plan.

Hence, with 0% APR, consumers can definitely cut back on their expenses, and use more of their dollars toward paying off their debts.

So before you grab that dazzling offer of 0% APR on a given credit card, try to consider some factors first.

1. Research

If you have heard about 0% APR credit cards but do not exactly know how it works, it is best that you learn more about it through research.

Learn more about annual percentage rates and how 0% APR credit cards work. Through research, you would be able to know that they only work for 6 months and after that period, you can no longer enjoy this offer.

2. Read the fine print

Indeed, 0% APR credit cards can give you more advantages than you can imagine. Just remember to read the fine print. Many credit card owners are blind-sided by expenses and fees after 0% APR has expired. Most of the time this is because they have not read the fine print. The only way to compare credit card offers is to read every part of the offer, and understand it thoroughly. It you don’t understand the terms or instructions, call the company and get clarification.

0% APR credit cards can be lifesaving packages; they can greatly reduce your credit card expenses. However, they do not necessarily provide you a lifetime advantage. You must make a plan to pay off the debt, and stick to that plan, if you want to successfully use 0% APR credit cards.

When was the last time you had to deal with a difficult customer? It was probably and external customer but perhaps it was an internal customer, such as a member of your team, a colleague or even – your boss!

I’m sure that you always want to provide exceptional service to both your internal and external customers. However, in the real world, things go wrong and mistakes are made. These “customers” will often judge your level of service based on how you respond to a mistake. Do it well and they’ll probably forgive you and possibly even say positive things about your business or your abilities to other people.

The important thing to realise when dealing with an upset customer, be they internal or external, is that you must -deal with their feelings, then deal with their problem. Upset customers are liable to have strong feelings when you, your product or service lets them down and they’ll probably want to “dump” these feeling on you.

You don’t deal with their feelings by concentrating on solving the problem, it takes more. Here are 5 action ideas that deal with the customers’ human needs:

1 – Don’t let them get to you – Stay out of it emotionally and concentrate on listening non-defensively and actively. Customers may make disparaging and emotional remarks – don’t rise to the bait.

2 – Listen – listen – listen – Look and sound like your listening. The customer wants to know that you care and that you’re interested in their problem.

3 – Stop saying sorry – Sorry is an overused word, everyone says it when something goes wrong and it’s lost its value. How often have you heard – “Sorry ’bout that, give me the details and I’ll sort this out for you”. Far better to say “I apologise for ……” And if you really need to use the sorry word, make sure to include it as part of a full sentence. “I’m sorry you haven’t received that information as promised Mr Smith”. (It’s also good practise to use the customers name in a difficult situation).

4 – Empathise – Using empathy is an effective way to deal with the customers feelings. Empathy isn’t about agreement, only acceptance of what the customer is saying and feeling. Basically the message is – “I understand how you feel”. Obviously this has to be a genuine response, the customer will realise if you’re insincere and they’ll feel patronised. Examples of empathy responses would be – “I can understand that you’re angry”, or “I see what you mean”. Again, these responses need to be genuine.

5 – Build rapport – Sometimes it’s useful to add another phrase to the empathy response, including yourself in the picture. – “I can understand how you feel, I don’t like it either when I’m kept waiting”. This has the effect of getting on the customer’s side and builds rapport. Some customer service people get concerned with this response as they believe it’ll lead to – “Why don’t you do something about it then”. The majority of people won’t respond this way if they realise that you’re a reasonable and caring person. If they do, then continue empathising and tell the customer what you’ll do about the situation. “I’ll report this to my manager” or “I’ll do my best to ensure it doesn’t happen in the future”.

Make no mistake about it; customers, be they internal or external, are primarily driven by their emotions. It’s therefore important to use human responses in any interaction particularly when a customer is upset or angry. If customers like you and feel that you care, then they’re more likely to accept what you say and forgive your mistakes.

A cash out refinance mortgage loan is a great option if you have accrued a lot of equity in your home. If you owe $75,000 on a home that is worth $125,000, you could refinance the amount you owe and take up to $50,000 in a cash loan against the equity in your house. The money can be used to consolidate debts, do a remodeling project, or even invest. As great as a cash out refinance can be, there are a few things to think about before you decide to take out this type of loan.

How high are the fees to refinance?

Taking out a home equity loan usually costs less in fees than a refinance. Refinancing your home can cost you quite a bit when you consider higher loan fees and the possibility of points. If you already have a good interest rate on your loan, refinancing so that you can get a cash out option, might mean paying a higher interest rate on a new loan. In that situation, you might want to consider taking out a home equity loan instead of a cash out refinance mortgage loan.

How fast do you need the money?

When you take out a home equity loan, it takes less time to see your money. Often, it only takes 5 days to close. Cash out refinance mortgage loans can take a lot longer, so if you need the money immediately, it probably isn’t the best option.

Protect yourself from scam artists.

There are lenders that practice something called loan flipping. They convince you to refinance your house, taking out a bit of equity for a project or two. A few months later they approach you to refinance again, convincing you to take out more cash from the equity in your house. Their scheme is to keep having you refinance, tacking on large fees and possibly increasing your interest rate until you are so far in debt that you end up losing your house. This particular scam has been played against many elderly homeowners with devastating results.

Taking cash against the equity in your house can be a wise move, but always compare taking a cash out refinance mortgage loan against the option of taking out a home equity loan and choose the plan that is best for you.