Network Marketing Tricks

Unless you pay off your credit card balance in full every month, chances are you’re sliding further into debt.  Of course, with a Network Marketing business it’s easy to earn a few hundred pounds a month extra to more than pay for the repayments, but here are some tips on saving money and avoiding the debt in the first place.

1) The ‘most expensive debt first’ trap

Your credit card bill probably includes several different types of debt. Money and interest you owe for products you buy, cash withdrawals and for any balances you have transferred from another card. You probably think that as you are using the same card for each you will be paying one rate of interest. Not always the case!  To make matters worse, the card company will not use your repayments to reduce the most expensive type of debt on your card!

In fact, your monthly repayments are probably being used to may off your ‘interest free’ or reduced rate debt, while you rack up interest on newer purchases and more expensive credit.

To avoid this situation, try and keep balance transfers on a different card to the one you use for purchases.  Also try to avoid using your credit card for cash withdrawals unless it’s a real emergency as this will cost you the most, and you’ll have to pay a handling fee too!

2) The ‘direct debit’ trap

Setting up a direct debit for monthly credit card repayments is a great idea. While  late payment fees are now capped at £12, these can be easily avoided by setting up a direct debit payment that will clear in plenty of time. There is a down side to direct debit though. Most card issuers will set up your debit by default to only pay the minimum amount.  This increases the life of the debt, and the total repayable, often meaning a debt takes 20 - 30 years or more to clear!

When setting up your direct debit, enter in the fixed amount you can afford every month. If your card issuer won’t accept this, continue to pay the minimum by direct debit, and pay an additional amount off each month by cash or cheque.

3) The ‘minimum repayment’ trap

Many people only repay the minimum on your credit card bill each month. This might seem to cost you less in the short term, but you could still be paying it off in 40 years as the tiny payments barely reduce the interest you owe, creating a debt cycle.

In most cases, just paying a few pounds more a month can dramatically cut the overall time it will take to clear your debt and save money. For example, on an average balance of £2,950.82 a consumer would pay £2,200 less in interest if they repaid 3% rather than 2% each month, and they would repay the full debt almost 15 years earlier!

If you have debts on credit cards, try to pay off what you can afford each month.  Start with the card that has the highest interest rates first and take advantage of interest free balance transfers when available.

4) Earn more to reduce the debt

A few hours a week running a Kleeneze home business could easily earn you £200 - £500 or more each month.  Just using half of that extra income to pay off your credit cards will get you out of debt many years faster, while putting extra cash in your pocket at the same time.  To find out more request one of our free home business information packs.

The ‘Credit Crunch’ continues as a study has shown that retired borrowers in the UK owe four times what they did 10 years ago.

The survey, by Help the Aged and Barclays, found that a quarter of people approaching retirement age have outstanding consumer credit commitments.

It said there had been “considerable growth” in sums of money borrowed by credit users, including older people.

UK consumers owe more than £1 trillion in secured and unsecured borrowing.

The reason for this debt is a combination of factors but one thing is sure, if more people realised that a simple home based business could not only bring in a few hundred extra pounds each month, but even lead to substantial residual earnings even in retirement, these figures would be very different.

While Help the Aged head of policy, David Sinclair, warns of a “ticking timebomb”, our industry is seeing massive growth and a bright future.  We are in one of the very few truly recession proof industries, and have the answer to so many people’s problems - we just need to spread the word and educate the public about this fantastic opportunity.

Budapest, Cannes, Marrakech… ???? The ‘European’ Conference destination keeps getting more and more exciting each year. Last year’s all expenses paid 5 star trip was to sunny Marrakech in Morroco but you can be sure they will top that this year.

The destination of course will be announced at the summer conference, Birmingham NIA on 14^th June but qualification has already begun. YOU can qualify for this amazing trip, no matter what level in the business you are currently at. Even if foreign travel doesn’t excite you, qualifying for a conference can only help your business – building belief and interest from warm market and prospects… and of course, if you aim for a conference and don’t quite make it, you can be sure to at least move your business forward and increase your income along the way.

Qualification Criteria is Period 4 to 9, INCLUSIVE.