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Hi,
I have a business credit card... and need to lower the monthly payments.
I have a business bank account with Wells Fargo, and a credit card linked to the business account.
It's a one-man work-at-home business, and I'm a Sole Proprietor,
The credit card balance is about $7,000, and the minimum monthly payment about $200.
APR 21.49%.
I entered a Hardship Program for 4 credit cards in my personal name, and that has helped (it was 3 years ago, and I'm well on the way to paying off the debt).
I called the company I have the Hardship Program with, but they said my Wells Fargo business card is not listed as one that accepts a Hardship Program.
I called Wells Fargo directly, and they said they can't consider anything unless I'm behind in my payments, which I'm trying to prevent... I'm just trying to reduce my monthly payment (and interest rate!)
You could try transferring the balance to a new personal cc and then apply to get that card accepted.
I realize you might not be able to get a new cc but it is the only thing I can think of.
There are online vendors that lend money and you could try to borrow from them and pay off the business card.
I can not think of any names now but the companies let people like you and me loan money to people like you and me. Be sure to read the reviews on the companies. Just remembered one as an example https://www.lendingtree.com/
Many thanks, galaxyhi and rjm1cc, for your replies!
Yes, I think applying for a personal cc and doing a balance transfer is a good option... I'll give that a go.
You could try transferring the balance to a new personal cc and then apply to get that card accepted.
I realize you might not be able to get a new cc but it is the only thing I can think of.
There are online vendors that lend money and you could try to borrow from them and pay off the business card.
I can not think of any names now but the companies let people like you and me loan money to people like you and me. Be sure to read the reviews on the companies. Just remembered one as an example https://www.lendingtree.com/
How does that work?
Transferring business debt to a personal CC may raise all sorts of issues with the IRS.
Personal credit card debt, and or expenses related (such as fees, surcharges, etc..) have long since ceased being deductible. OTOH according to the IRS, annual fees, convenience fees, and even interest related to business credit card can all be considered deductible business expenses.
Co-mingling personal and business debt will also likely complicate any sort of (God forbid) bankruptcy proceeding.
All this being said, am sure persons do transfer small business CC debt to various zero interest CC offers. Just am pointing out the potential drawbacks.
Hi,
I have a business credit card... and need to lower the monthly payments.
I have a business bank account with Wells Fargo, and a credit card linked to the business account.
It's a one-man work-at-home business, and I'm a Sole Proprietor,
The credit card balance is about $7,000, and the minimum monthly payment about $200.
APR 21.49%.
I entered a Hardship Program for 4 credit cards in my personal name, and that has helped (it was 3 years ago, and I'm well on the way to paying off the debt).
I called the company I have the Hardship Program with, but they said my Wells Fargo business card is not listed as one that accepts a Hardship Program.
I called Wells Fargo directly, and they said they can't consider anything unless I'm behind in my payments, which I'm trying to prevent... I'm just trying to reduce my monthly payment (and interest rate!)
Many thanks for any advice / suggestions.
Interest rates have been rising for everyone since the FED began hiking things about a year or so ago. That being said as with most all things credit related CC companies usually give their lowest/best rates to those with high to excellent credit scores.
If your FICO score is being dinged by high utilization you need to get balances paid down. OTOH should you have any sort of delinquency that is going to ding your score for awhile before effect lessens.
Try finding any sort of extra income (get a paid job somewhere doing anything), and direct those extra funds to paying down debt.
What is the nature of your business? Have you tried various ways of increasing sales? Things are tough all over for many, but you've got to double down with advertising, promotions, and other ways to drum up customers and by extension bring in money.
Then there is the standard advice, cut down on expenses where possible so to have more wiggle room in monthly budget.
Transferring business debt to a personal CC may raise all sorts of issues with the IRS.
Personal credit card debt, and or expenses related (such as fees, surcharges, etc..) have long since ceased being deductible. OTOH according to the IRS, annual fees, convenience fees, and even interest related to business credit card can all be considered deductible business expenses.
Co-mingling personal and business debt will also likely complicate any sort of (God forbid) bankruptcy proceeding.
All this being said, am sure persons do transfer small business CC debt to various zero interest CC offers. Just am pointing out the potential drawbacks.
The business is a sole proprietorship. The reason to set up business and personal accounts is to make it easier to track the business expenses for schedule C if you are talking taxes. If this was a C corp I think you would be correct, But he could treat the movement from the business to himself as an additional capital investment or a loan.
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