AH what to do

Discussion in 'Business Operations' started by mcwlandscaping, Feb 4, 2006.

  1. mcwlandscaping

    mcwlandscaping LawnSite Gold Member
    Messages: 3,163

    Ok, I was stupid and I charged my eXmark on a Zero percent credit card. I have about $1800 left to pay on it but i don't have the money on me right now because im not making any since it isn't snowing. I have about $3k in my bank account. Do you think it is a good idea to just take the money out of there to pay off the rest of this just to get it done with. Im not making much interest on the saving account. Thanks guys, just to put it in here, i personally think i should just take out the money but want more opinions. Thanks
  2. J Hisch

    J Hisch LawnSite Senior Member
    Messages: 952

    why do you need to take the money out now, just make the next two months minimum payments, then when your cash flow starts up you can pay it off then. If you pay it off now you will be what we call cash hungry, or you could pay off and use the credit card to float other expenses until your cash starts coming in again. Personally, I would just make the next 2 minimum payments. Especially at zero percent.
  3. trimmasters

    trimmasters LawnSite Senior Member
    Messages: 264

    Im thinking you mean the zero% is about to expire and you will have to start paying intrest? is it a set up where they will charge you interest back to day one if its not payed off? if that is the case I bet i would pay it off to. If you mean they are just going to start charging you intrest now I would probely keep paying as long as the rates were fair with that small a savings so i had money to work with for the 5000 othere expenses that seem to come up
  4. mcwlandscaping

    mcwlandscaping LawnSite Gold Member
    Messages: 3,163

    We have till august with zero percent interest on that payment. Also, if we make on payment late interest begins to be charged. I think ill do what you guys are saying and make the min payments till cash starts comming in again. Thanks guys

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    Yeah save your cash for now, you'll have it paid off by August I'm sure. Use some of the 3k for advertising payup
  6. out4now

    out4now LawnSite Bronze Member
    from AZ
    Messages: 1,796

    Ya, why pay it all off if its zero percent? pay your bills from it and still have a little emergency cash or advertisng funds left. What happens if your transmission on your truck craps out or something? You'd have a paid for mower but no way to move it around.
  7. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Messages: 8,745

    I would wait as well. Just pay off a little bit. No reason to pay of something huge and then not have the cash.

    You are kind in the same boat that I was last week. I just received a little over $3,000 for a pre-pay from a customer, and I used approx $1,300 to pay off one of my pieces of equipment. Sure I was getting charged interest though compared to you.
  8. Trinity Lawn Care  LLC

    Trinity Lawn Care LLC LawnSite Senior Member
    from NJ
    Messages: 946

    Yeah, I wouldn't pay it off yet. 0% is like free money, because as long as you pay it off before interest kicks in you make out like a champ. Your cash will start coming in soon. As long as you are not paying any interest and you are not being eaten alive by a hefty payment I would hold off.JMO
  9. ALarsh

    ALarsh LawnSite Silver Member
    from Midwest
    Messages: 2,412

    I don't really get the question. Haven't you been paying for this mower all winter? I don't get why there was a sudden uprise if you should pay it off now or later? Just make the monthly payments until you get out of winter.
  10. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Messages: 8,745

    I think that would he is getting at is that he has the money now, should he pay it off totally now, or just keep on making the payments, but taking a chance that at the end of August, if it isn't paid off he gets charged back all of that interest.

    I was in a similar situation with a mower before with 6 months no interest. What I did though was just towards the end of the 6 months, I transfered the mower over to a 2.9% credit card. If I didn't, I would have been charged over $500 in interest in just 6 months.

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