There’s always an untapped source of wealth, when we are planning to invest. In order to succeed, we need to position ourselves accordingly and people who fail in their investments, could eventually face a mountain of business debts. Debt is like excess fat layer to our body. When we let it to accumulate, it will kill our finances. So, it is important for us to attack something that may kill us financially. After a failed business venture, we should try to get back on track and eradicate debt that we have accumulated.
- Make a strong commitment: if we are overweight, it is not possible to lose 80 pounds in a night. Debt is the same thing and eradicating it will require a daily commitment. The key to recovering financially is by acknowledging that we have problems. This will allow us to be more committed in taking the necessary steps.
- Try pay cash: It is the fastest way to eliminate business debt. It is a bad idea to use credit cards to pay our debts, because we will end up in worse situations. Credit card debts are easy to make and they also cause more financial problems. To pay for business debts, we should pay them in cash with the money that really own.
- Budget our expenses: It is important for us to budget our expenses and track our progress. We can’t win in the game of debt elimination if we don’t know our own score. So, it is important for us to budget our monthly expenses and track our overall progress. In this case, we should know whether we have been gone over budget on a specific thing. If we are, it is important for us to decrease expenses on specific items. It is important that we have consistent surplus on multiple items in our budget. We could apply the extra money to repaying the business debt. If we do this long enough, we should be able to reduce our overall debts.
- Make prioritization: It is important for us to prioritize our debts and if we don’t know which debts that need to be urgently repaid, we won’t be able to dig ourselves out of the hole. It is obvious that business debts need to be repaid immediately, especially if the collateral if our business. We should make a list of debts that need to be repaid first, based on the degree of urgency.
- Reduce interest rates: We should negotiate with lenders to reduce interest rates, so we will be able to pull ourselves out of debt immediately. Credit card companies should be notified of our recent business ventures and we may get a lower rate. If our business still survives, lenders will want to keep it operating, so we will still be able to repay the debt.
Overall, we need to plan, plan and plan. Debt elimination needs continuity and it takes time, depending on the size of the debt and our current real income. We should always try to pay extra to allow our business to regain its position in the market. All plans should be followed through immediately.