Paying off the debt: where to start In many cases, people interested in getting out of debt don’t know what to do exactly and where to start. Usually, they don’t even know where they spend their money! And that’s the reason why you need to write down EVERYTHING. After you do, you will be able to control the situation, and this is already a great part of the job done! First and most important thing is to follow where your money goes each month. Write down the amount of money you spend paying taxes or to pay bills. It may seem difficult and require a lot of time, but it’s actually much easier than it seems, and will help you a lot later. Don’t stop yet, read on to find why you need it and how it works.
Fifteen, ten even a few years ago you could count on doing well “barring disaster” as long as you had good product or service, good people working for you and had a solid business plan. Cash flow is king, but with most businesses you count on a certain amount of credit every year to maintain operations. So bank loans, credit cards for purchases and vendor credit has for most of us been a necessity!
The problem has been that sources of credit have tightened up, dried up or gotten increasingly hard to get. The fact is that in this economy everyone is tightening the belt. Just when sales are down they want proof that you will pay on time. It seems like you spend more time trying to prove your business can weather the storm than in the energy it takes to find new markets for sales.
Once you get behind on payments your once good creditors become cold and sometimes unresponsive to your needs. They may even cut you off and demand payment. Try as you might the money is just not there. This is the point that you either come up with the money from somewhere or consider drastic measures, like selling out, shutting it down or maybe even bankruptcy.
Bankruptcy is not the viable option it once was. It definitely is not a pass and may mean you will never be able to get a business going again. And even though you may think it will not affect your personal financial life after you may be mistaken.
What I found personally and for other business associates I know is I needed third-party help. Though there are some less than honest companies out there that take advantage of desperate business owners by claiming to help for a fee then taking what they can and leaving them hanging to drown there are many accredited companies that consistently get results. Accredited commercial debt resolution companies are dedicated to helping struggling businesses with the pressures of debt to achieve financial stability and success. Commercial Debt Consolidation exists for struggling businesses to help them avoid bankruptcy and to create repayment programs with their creditors that fit within the budget of the business.
They do that by restructuring your business debts with corporate credit cards, vendors, creditors, suppliers, business lenders, collection agencies, or attorneys. At the same time we are increasing the cash flow of your business, we work to maintain relationships with key suppliers and vendors. If your accounts are already delinquent and you are receiving creditor calls with harassing threats, calls, potential repossession, or litigation, they can get started immediately as the point of official contact so that you can focus on your business. The focus is on reaching out-of-court resolutions that work for your company. Some things you need to know about these companies is that they work mostly with unsecured debt that have no type of asset attached to them. Secured debt is buildings or cars, trucks, etc. Most consolidation loans or second mortgages are secured with assets.
Follow the tips you’ve found in this article and it will really bring you the best results. Be committed if you really want to get rid of your debt. Be patient as it will take time. The process is not easy, but once you start and do it step by step following the advices given in this article, you’ll get used to your credit debt management, and your debt will be quickly reduced.
Harris Smith offers advice on home equity line of credit and obtaining credit. Get Debt Consolidation help before your neighbor does!
