And because they’re cobranded with Master Card or Visa, you can pay bills online or use them almost anywhere.To tap into this boom, American Express launched its own version in June.“Generally when you decide to finance something, it’s a good idea to structure the length of the loan to match the life cycle of the item.For example, if you purchase a car you might structure the financing over five years, because at the end of the five years you may consider selling the car.” If you were to structure the financing for your car over 30 years, it means that if you sell the car in five years time, you’ll actually end up holding onto the debt for an additional 25 years – which dramatically increases the overall interest you’re paying for the car.We want to make sure you know all of the costs involved.
Although signs show an upturn in the economy, many Americans are deep in debt, and not everyone can work overtime or a second job to pay down that debt.
The advantage for our clients was that it reduced their overall monthly repayments substantially, as they only had one mortgage payment to make.
“We sat down with them and when we explained that they would be paying for their purchases on their credit card or for their car for the next 30 years, they soon realised that this wasn’t the best way to structure their finances!
On the other hand, these benefits are not without costs, most importantly in the form of a loss of control over the business.
Here is a list of pros and cons to consider in determining whether to go public.