Rock Your Debt

Some small businesses trying to keep their business alive and growing in the early days of America’s economic crisis fell victim to a stealth killer – business credit card debt. They found it easier to use a business credit card than attempting to get a small business loan. However, when the downturn overtook the economy in their immediate vicinity, they found themselves high and dry financially and incapable of handling their business credit card debt.

What can the small business owner do besides bankruptcy in these circumstances? Here are some ideas to consider if you find yourself in this situation.

1. Develop a plan.
   Determine your total business debt. Sometimes it is good to write it out with the following information:
   • The amount of the debt
   • Who the debt is to
   • What are the rates of interest and are there any hidden fees
   • All the account information – account name, number, contact person(s), etc.
2. a.  If you still have your business, work on paying off the business credit with the lowest balance first.
   This action will clear up that account quickly. It will provide you with a sense of accomplishment and it will also help your credit score. Remember to maintain, as best as possible, the other accounts by paying minimum payments for a while. Once that first business credit card is paid off, reanalyze your debt and begin paying off the next card with the lowest balance by taking the payments from the paid off card and applying them to this account along with the minimum payment. Soon that business credit card will be paid off. Continue with that program until all have been paid off.
   b.  If you have closed your business, take care of your personal finances first.
   You may have to do some sacrificing where possible. You also might have to take on extra work if available. Next, communicate with your personal creditors see if they will work with you. Remember this, they may not know of what you have been going through and they need to know, because you have made them a promise to pay and you owe them any explanation of any change in your situation. Ask them if they will remove any late fees and waive any annual fees on your accounts. They may help you make a new payment plan that might be extended to help you out of this present circumstance.
3. Look for a debt negotiator.
   These people are professional financial counselors that are quire capable of helping you map your way out of this business credit card debt problem. Your business attorney may be able to steer you in the right direction to find someone best suited for your type of debt.

Remember, bankruptcy is not the first thing to consider when your business goes sour. A debt is a promise to pay, and nothing can help you business credit card debt better than working out a means to do just that. It will help you maintain a good name for you and your business.

You also may be interested in:

1. How To Negotiate Credit Card Debt
2. Some Basic Solutions To Eliminating Credit Card Debt
3. Ways To Eliminate Unsecured Credit Card Debt