Head in the Sand

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Don't Bury Your Head in the Sand: Get in Front of Debt

May 09, 2018 - 5:07 pm
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There are two types of people in this world — those who think debt is healthy and those who avoid it like the plague. When it comes down to it, debt isn’t necessarily something you want to have, especially if you’re the owner of a small business. Serious debt has the potential to hold you back from accomplishing your long-term financial goals. However, if you’re already in debt, you probably know that. So, what are you supposed to do now? Here are a few ways to ditch your debt and get your business on the right track.

 

Check your credit report

The first thing you need to do is to figure out where you stand credit-wise. Don’t be afraid to look at everything. Check your credit score and go over the reports. Even small things can dramatically impact a credit score. Once you have a clear picture of what’s going on, you’ll know what needs to be fixed or corrected.

 

Pay it off

Okay, this pretty much goes without saying — the sooner you pay off your debt, the better off you’ll be. Don’t give up. If you have a serious amount of debt, it’s going to take a while to make that headache go away. The best way to do this is to list out every account you owe, order them from the smallest amount to the largest. Then start chipping away your debt one account at a time. If you start tackling the smaller accounts first, you’ll start to see some success immediately.

 

Talk with creditors

It may sound unrealistic, but sometimes these guys will work with you. See if you can get a better interest rate, or if you’re really in a bind, ask your creditor if he or she would settle for a percentage of the total amount owed.

 

Remember, debt isn’t evil, but taking on too much could ruin your business and your life. The best way to tackle it is to go in head first. Get all the information that you can and then work your way out. It might take years, but one day you’ll be able to breathe freely, knowing that you don’t owe a penny to anyone.

 

 

This article was written by Tabitha Shiflett for Small Business Pulse