Credit Cards Suck and Here’s Why…

Credit Cards Suck and Here's Why...

Credit cards suck and you should never use them again…

…said no business coach ever.

Today I wanted to talk about why you shouldn’t be scared of credit cards and debt when it comes to business.

You’ve probably been taught business credit cards are bad for a multitude of reasons. Maybe your parents mismanaged their credit, friends went bankrupt, people messed up. Maybe you yourself went bankrupt before. Either way, you may have been told you can only grow your business with cash, which is absolute crap.

If you go by that logic, if you’re in any type of debt, you shouldn’t start a business. The media tells you debt is bad, but guess what: Merck, Blue Cross, United Healthcare—they are all in debt up to their gizzards and are also earning tons of money. The biggest businesses in the world are in debt.

Good debt and bad debt are two different things. For instance, I pay $25,000 a year for coaching from my business coach, Bedros. I didn’t have the cash in the bank. I had to split it on two credit cards. And guess what? Bedros has helped me grow my business immensely. One idea he gave me paid for the entire year of coaching. So what if I get $300 worth of fees because it took me three months to pay it off? I got more than $300 back. That’s good debt.

Debt Is Not a Liability

Good debt is spending money on a massage table to treat patients or a phone for your social media posts. Bad debt is spending money on a new TV when you don’t need it for your business. (Of course, now TVs aren’t expensive anymore, but there was a time when they were crazy expensive!) Bad debt is also buying a new car for no reason.

If you begin to think like an entrepreneur, credit cards become easy. If you don’t have a business card and you own a business, get off this video and get one right away.

The easiest thing to do is get a card with great cash back on what you use most. My AMEX has 3% cash back on everything, and 5% on something of my choice. I chose my 5% cash back for Facebook Ads, since we use them a lot, but you can choose whatever you’d like.

The moral of the story is that debt is not a liability. Your student loans and credit card debt are not liabilities. Know that you will get a return on your investment. It may not be this month, but it will be next month or next year.

If you’re struggling with any of this and wanting to open a cash practice, click here to join my Free webinar on how to get started!

 

About The Author

Aaron LeBauer

Aaron LeBauer PT, DPT, LMBT started a 100% cash based physical therapy practice right after graduation. He's on a mission to save 100 million people from unnecessary surgery & enjoys helping passionate therapists build successful businesses without relying on insurance.

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