Not
ready to close your business? Proven steps for turning failing
business around.
Some business owners feel as though they are against a wall with
debt and contractual obligations. They are exhausted. Their leases,
loans, and contracts pile up, while their money dwindles. Their
business is ruling their life and they just want to get out.
As a frustrated business owner, you may find yourself in this
situation. You may have tried to turnaround your failing company
with little success. And if you have no buyer on the horizon, you
may have decided you've had enough. It's time to close your doors.
But how do you go about doing this? You will find rows of books
at your local bookstore that cover how to start a business, but
little on how to close one. How will you meet the obligations of
your loans and lease? Do you owe money to the IRS, individual agencies,
or contract workers?
There are many items to consider when you close a business. And
you have some choices to make when it comes to getting rid of debt
and folding your company. Let me explain.
Straight
talk about business bankruptcy and closure
How To Avoid Bankruptcy & Get Out Of Debt Faster Using Debt Negotiation! Has credit card debt got you thinking about bankruptcy?
You’re not the only one these days. Even with the new bankruptcy laws, credit card debt continues to climb. Unfortunately for most of us, our paychecks don’t climb as quickly.
If you’re on the verge of bankruptcy, you may have another alternative.
Debt negotiation is a process where you negotiate with your creditors to pay off your debts at a reduced amount – for example, if you owe $12,000, you can negotiation a payoff of $5,000. The benefit for the creditor is that they get more money than they may have through bankruptcy, and they get the money sooner. The benefit for you is obvious – you get out of debt faster, and save lots of money in interest.
Where do you get the money to pay off the debt?
Take the money you would have normally used to pay your credit card bills, put it aside, and when you accumulate enough to pay off the debt, send in the reduced amount you agreed to.
If this sounds confusing, that’s ok. It’s really not.
There are many professional companies that will do all the work for you, and charge you a percentage of the savings.
I can speak from experience (I built up a lot of debt trying to start a sporting goods business, which didn’t quite work out) that even with the fees, this is a good deal – plus you save a lot money by not having to pay the high interest rates on your credit card bills.
Sure, it is a more aggressive approach to getting out of debt than making minimum payments, using credit counseling, getting a debt consolidation loan, or borrowing from a friend or relative. But in the end, you’ll get out of debt faster…
And avoid bankruptcy!
If you’ve never heard of debt negotiation (also called debt settlement), that’s ok too, not many people have. I didn’t until I began to seriously consider bankruptcy.
One reason many people are hesitant to consider debt negotiation is that it goes on your credit report. Sorry to tell you, but having lots of debt (even if you pay on time), making payments late, even credit counseling – all go on your credit report and can negatively effect your credit. And (of course) bankruptcy is a big negative!
In my case, getting out of debt, removing all the financial stress, and being able to live a normal life were well worth it. With so much debt, having good credit was meaningless anyway.
Plus, I was able to get all but one of the negative items off my credit report (that’s a topic for another discussion), and my credit is now back to normal. In fact, I now get more credit card offers than I can handle – and fortunately, I can now throw them all in the trash!
When money is tight, and debt is high, there aren’t many simple answers.
But if you are already considering bankruptcy, then debt negotiation might be the right alternative to help you get out of debt faster!
About the author:
Kris Bickell is the owner of Debt-Tips.com, a helpful site for consumers struggling with credit card debt. For tips on getting out of debt, repairing your credit, saving money, and making extra money online, sign up for the free “5 Simple Steps To Getting Out Of Debt Faster, Fixing Your Credit Problems, & Saving Lots Of Money!” email course at: http://www.Debt-Tips.com/.© 2005 Debt-Tips.com
Circulated by Article Emporium
Straight
talk about business bankruptcy and closure
A glimpse into the plethora of online loans
In today's world raising up loans to fund man's dream project is quite simple and easy! With loans made available online, the whole process of applying for loans has become a child's play. Just a click on the 'Apply Now' button can start the loan process. One can sit in his cozy chair and get the loan approval instantly at the comfort of his home. By clicking on the mouse one can gain access to a plethora of loans such as a car loan, home loan, business loan, personal loan, secured loan, mortgage, bad credit loan or a debt consolidation loan. We just name a loan and it's made available to . . .
|
