Credit Cards Are Clearly On Their Way To Becoming The Currency Of The Future

Category: Finance, Credit.

Income tax time is a time we all dread. Taxes are our obligation to the country and there is no way of escaping this expense.

However, taxes have to be paid whether we like it or not. Small businesses are especially affected by the high taxes they have to pay. Second, they may not be in the position to provide adequate cash to meet the high tax amounts. First of all, they may not have hands- on accounting staff on their rolls. Being a small business in the modern world is often a scary proposition. These days, large numbers of smaller businesses are choosing to pay their taxes through their business credit cards.

However, it need not always be that way. If you thought that credit cards were only good for clothes and groceries and buying products online, you have another think coming. Small businesses are especially pleased with this development. Credit cards are slowly taking over as the favored mode of payment for everything- - from mortgage and house rent to electricity, and taxes, necessities. Even if they do not have enough cash on hand to fill in their taxes, they can depend on their credit cards to finance that bill. One of the scariest things about defaulting on your taxes is that you might end up having to pay quite a large fine. Later when the money is recovered from their various debtors, the credit card bill can be paid off.

However, paying by card deals with this problem effectively. It is true that the tax authorities charge a relatively low interest on defaulting payments. The business still has to pay the credit card company, but at least it will not get the tag of a tax defaulter. However, the costs add up. In fact, while looking out for cards, I have on occasion found credit cards that charge no interest for up to fifteen months. If you want to avoid paying exorbitant amounts of interest on your credit card bills, you should at least try to find some really cheap credit cards.

If that is not a steal, what is? Of late, even governments have become aware of its important role. The power of plastic has been on the rise of late. Credit cards are clearly on their way to becoming the currency of the future. Maybe it is time for us to recognize the power of a credit card, and use cards to pay some more of our regular bills. We must all get set for this.