As 2018 is coming to a close, we have witnessed that the e-commerce sector has registered a phenomenal growth rate and it is growing by leaps and bounds. We know that in 2017, e-commerce had played a pivotal role and generated almost $2.3 trillion in terms of sales and it is forecasted to hit almost $4.5 trillion by 2021 (as per Statista report). In the United States itself, e-commerce represents nearly 10 percent of the retail sales. Moreover, that figure is forecasted to grow by almost 15 percent every year.
E-commerce businesses are heading towards a promising future overall but several of them are sinking deep in debt and are not able to manage their credit card debts well. However, we know that mobile e-commerce sales had accounted for 34.5 percent of all e-commerce sales in the year 2017, and the figures have maintained consistent growth throughout 2018. By 2021, it is expected that mobile e-commerce sales would be going up to 54 percent of the total e-commerce sales.
According to https://www.forbes.com, we have come across indicators that show year-over-year growth in the sales figures during the holiday season. The economy in the United States seems to be growing at a healthy rate and has experienced already 17 quarters of GDP growth consecutively. Today, the economy is regarded as robust and consumers are spending.
We have observed that there is a boost in e-commerce sales but still many e-commerce enterprises are heading towards a disaster as they are not able to manage credit card debts well. You need to be alert and look for warning signs that show that your credit card debt is becoming overpowering and your business is heading towards a disaster as you are neck deep in debts.
You must learn when and how to restrain yourself from spending. There are actually no external indicators for gauging when precisely your credit card debt seems to be becoming overwhelming and you are losing grip on it. Do not let your business credit card debt get out of control. The credit card issuers would not be warning you that your credit card balances are becoming much more than what you could afford to pay every month. It is
your responsibility to watch out for and keep a constant vigil. If there are any warning signs that indicate that your debt is going out of your grip and you need to take proactive steps to manage effectively and eliminate it. Let us explore the obvious signs. Get in touch with experts such as https://www.nationaldebtreliefprograms.com/ for perfect debt management solutions.
Your cards may be way above your credit limit. This could occur pretty fast if you fail to pay up consistently your balance each month. An e-commerce entrepreneur ends up with a number of different credit cards that are all maxed out, hence, complicating the issue. In the event when balances are exceeding the limits, your interest rate may be raised by the card issuer. Thus, it becomes doubly difficult to promptly pay down your balance.
As an entrepreneur, you are in a financial mess and are not in a position to pay more than the specified minimum payment every month. Minimum payments are supposed to be the lowest amount to be paid by you. On your business or personal credit card so that you could still continue to use the card. However, if you are unable to pay anything more than your minimum balance. And if you are continuing to use the credit card. You are accumulating more debts and your debt scenario is getting worse by the day.
When you start defaulting or missing the monthly repayments on your business credit cards or even your personal credit card, that is really adversely impacting your credit card situation. Late payments would be increasing the amount you need to pay up. Moreover, late fees would be included and added to the balance. In case your credit card seems to be maxed out, all the late fees would be pushing your balance over the limit.
Using repeated balance transfers, cash advances, payday loans or some other kinds of debt for paying all your credit card debts. You are ultimately ending up creating more debts by constantly borrowing money for staying afloat.
Every entrepreneur finds it convenient to use credit cards for catering to everyday necessities. Often e-commerce entrepreneurs use up their business credit cards and then even start using their personal credit cards for business expenses. This is a dangerous tendency and you must refrain from using your personal credit card for business purposes. Moreover, using a credit card for everyday necessities is great as long as you are paying the specified balance every month. If you are not paying the monthly balance and still requiring credit for paying for all your everyday needs. And expenses of the business. it is surely a warning sign that you have serious financial issues at hand.
When the total debts pending on your credit card is over 30% of the total available credit. It is obvious that your credit score would be impacted adversely. This ratio is known to account for precisely 30% of the total credit score. So for instance, when your credit limit for your credit cards combined together amount to 5,000 US Dollars, you definitely. Would never want to see that your combined balances are actually adding up to over $1,500.
Credit card issuers have the expertise and experience to know even much. Before you that your credit card debts are getting out of control. When your application for a new credit card has been declined. You must browse through your mail for any letter from your credit card issuers who tell you clearly. And precisely why your new credit card request was actually denied. In case the chief reason is incredibly high balances on your credit cards, it
is a clear warning sign that you must exercise some degree of restraint in your spending. Moreover, it is high time; you started tackling your debts effectively before things start getting even worse.
In order to get all your existing credit card debts under control. You would require modifying your habits so that you are not making an already serious issue worse. You must at once, stop using your business and personal credit cards. So, You need to eliminate your credit card debt and that should be your top concern. You must appreciate and acknowledge the severity of the issue and take immediate action to seamlessly address the issue. This implies chalking out an effective debt elimination plan and you must consider sticking to it with determination.
It could be a long process to get rid of debts. But be persistent and patient and you could reap the benefits all in good time. Managing credit card debts could be a daunting task for an e-commerce business owner. However, if you make efforts at tackling your business debt without getting hyper and anxious, victory would surely be yours.