By Kelly Wilson

In 2017, it is rather surprising for a company not to be in debt. Even the average American household is drowning in debt problems. Most families are paying up to $2000 in interest to credit card companies. At this moment, you could be owing a few thousand to your creditors.  

Photo courtesy of Flickr

Photo courtesy of Flickr

One way to go about this is to declare bankruptcy. However, not every company is a Kodak or General Motors. These big bounce back stories are undoubtedly fascinating and inspiring. In reality, declaring any bankruptcy can have a severe impact on your immediate market. Your dedicated clients may leave you, and you will find yourself drowning in a cesspool of terrible credit scores and no inflow of cash.

Baby steps to financial freedom

The only way to smartly avoid succumbing to the economic pressure and rise to the situation is a debt consolidation loan.

Before we proceed any further, we want to ask you three critical questions –

  1. How much do you owe?

This may seem quite obvious, but when you are making ten payments around the month, it can become rather tedious to keep track of the total. Therefore, we urge you to sit down with all your bills and defaults and find out the exact amount.

  1. Do you need debt consolidation loan?

Debt consolidation loan is another loan that you need to pay. It is true that this loan buys you more time and gets you out of the mess. It is also true that in the next 2 to 10 years, you will have to make the payments to your consolidation company as well.

  1. What’s your credit score like?

If you have a strong credit record by the grace of the finance deities, you may think of getting an extended period of repayment. Alternatively, you can also approach your bank or credit union for a consolidation loan. If your credit score is in the neighborhood of 500, you need a private consolidation company. Here, a reliable company like the can help.

See more  HERE

See more HERE

Enjoying the benefits of debt consolidation

If you are sure about getting a consolidation loan, you can enjoy the following advantages –

  1. Improved credit score

You will be able to pay off all your credit card debts using the loan amount. You can pay off parts of your business loans as well. On top of that, you will get extra cash to start new projects and make new investments. This will open up new avenues for cash flow. These will combinatorial pull up your credit score, and you will be eligible for more business loans.

  1. Your market will not be affected

Quite contrary to bankruptcy, you do not always have to disclose your loan consolidation decisions to your clients or investors. This way, while you can pay off your debts, on one hand, you can continue doing your business on the other. Your market will remain strong, and your consumers will keep contributing to your profit pool.

  1. Lower payment rates

A good consolidation loan makes sure that the client business makes pays lesser than it used to before. This means, lower interest rates and flat interest rates. You can choose flexible repayment periods depending on the amount. Typical loan repayment periods usually extend from 2 years to 4 years for start-ups.

Is debt consolidation a big con?

For companies who think of debt consolidation as the ultimate destination and not an immediate solution to their debt problem, it will be nothing more than a huge con. Debt consolidation is a temporary solution. The company can only get your business out of debt for so long. Once your credit card debts are clear, you need to decide controlled buying to keep your debts clear and your credit score high. If you cannot wait long enough for your business to make a pure profit and expand your market, before you go binge shopping again, you will be on a hamster wheel of debt.

Debt consolidation will become a huge disadvantage if you are working with unscrupulous companies, who do not provide lower monthly payments and flat interest rates. You must always do a background check on loan consolidation companies before you get into an agreement. Look for reviews on Yelp, social networking sites and look for client reviews.

What if, you are still in doubt

If you are skeptic about the entire process, go for debt consolidation counseling. Any real and legitimate company like the National Debt Relief has a team who can help you understand and sort your finances. We have seen companies with strong markets and productivity, make less money simply because they do not have their payments in order. Sometimes, it is all about prioritizing and organizing.

  • Always keep your tax payments and payroll on the highest priority

  • Then try to pay off your credit card debts, which demand the highest interest rates

  • Next, go for utility bills and other bills that may be nagging you at the back of your head while you are reading this article

So before you can worry about how you are going to pay off all that debt your business has accumulated, pick up the phone and give the debt consolidation counselor a call. Be sure not to negotiate with your creditors. This often results in payment disputes and a derogation of credit scores.

Your post-consolidation days

Many companies make the mistake of becoming too relaxed after getting a consolidation loan. The lack of productivity often gets them back to square one and this time, with higher interest rates for two consolidation loans.

Consolidation loan affects your credit score depending on which method and which company you choose. Always pick a company with a good debt management and counseling plan. Once you have done that, you are already one-step ahead towards business productivity.

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Author bio: Kelly Wilson is an experienced and skilled Business Consultant and Financial adviser in the USA.  She helps clients both personal and professional in long-term wealth building plans.During her spare time she loves to write on Business, Finance, Marketing, Social Media.She loves to share her knowledge and Experts tips with her readers.