Get Debt Relief for Your Small Business

Introduction
Are you contemplating the idea of declaring your small business bankrupt? Well, there are other debt management solutions available to handle your debt situation.

Impact of Recession on Small Businesses
The recent economical recession has had a tough impact on small businesses. As most businesses take unsecured loans, when they aren’t able to pay the accumulating debt and the high interest rates, they opt for bankruptcy. However, bankruptcy can have its own share of repercussions and hence should be the last resort to be debt-free. Just because you are unable to pay off your debt, you can’t lose all the goodwill you have worked so hard to earn with your business. In such a scenario, debt management solutions offer many strategies to handle your small business’s debt issues.

Debt Management Plan
Under a debt management plan, debt experts usually bargain with your creditors to reduce the debt amount in a certain clause so that the payable amount will be lower than the current debt amount. It’s a legal procedure in which your creditors enter into a new agreement with you. Thanks to debt negotiation, you can eliminate up to 60% of your unsecured debt.

Debt Settlement
Debt settlement is a very good debt management plan for small business owners who have more than $10K in unsecured debt. Unsecured debt creditors are apprehensive about collecting their delinquent accounts, so debt analysts take advantage of this through negotiation and settlement.

Relief Network
Debt management analysts often suggest a liability relief network for small business debt settlement. In fact, it’s considered a better choice than settlement companies. This network only enlists effective debt management companies with a successful track record. Hence, small business owners can expect some significant developments in their quest toward being debt-free.

Here are some dos and don’ts for small business owners:

• Debt management planners strongly suggest not opting to borrow to repay your current debt. If you already feel the heat of debt, further borrowing will only add to your unsecured debt.
• Be punctual in your tax payment. Debt management planners prepare charts to help you maintain your tax details. Remember, even one tax non-payment can earn you an asset penalty from the Revenue Department.
• Maintain a separate bank account. In this way, you can save a compensatory amount from your creditors in case of a drastic situation like bankruptcy.

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Debt Fighting Tricks to Control Debt

Introduction
Worried about how to get rid of debt? With these debt management tricks you can give your debt problems a tough fight. 

Debt can happen in a number of ways. Unexpected medical bills, accidental expenses of a spouse, extended sick leave, mortgage loan, credit card bills – all these are circumstances that can push you towards debt one way or another. Debt is like an avalanche – if not handled in time, it can blow right over you. Debt management agencies are there to help you in your fight against debt.

Stop the blame game.
You might not realize it, but 99.9% of the time we tend to blame others for our debt situation. Be it for reasons like student loans, mortgage payments or credit card issues, nobody can force you to be in debt. These factors could have aided you, but if you are not able to control your expenses and get out of debt, you know whom to blame. Once you accept the responsibility, the next stage is to seek debt management solutions. 

Know your debt.
It might be surprising, but there are people who actually have no idea how much money they owe to creditors. Ironic, isn’t it? Well there are debt management analysts to help. They add up your credit card bills, student loans, car loans, home loans, etc., to prepare a detailed debt payoff structure. 

Make a smart move.
Don’t let irresponsible finance related decisions spoil your chance of becoming debt-free. Just because something is on sale doesn’t mean you have to buy it, especially if you don’t need it in the first place. The idea of “saving money” by buying on discount is illogical. So strictly follow the debt management plan. It will help you streamline your expenses. 

Be consistent in interest payment.
Does it matter if you miss an interest payment one month? Or if you make a late payment? It does, a lot. You might make it up in your next payment, but it will generate a bad credit rating for you anyway. And a bad credit report can have a negative impact on your credibility with creditors. That’s why debt management analysts recommend being consistent in debt payments. 

These are not hidden secrets, but tested debt management tricks which, if followed with dedication, can bring you into debt free territory. 

Understand Your Options through Debt Management

Summary:
Debt is unavoidable in our current economic scenario. But instead of panicking, it is definitely worth exploring the possibilities that could lead you to be debt-free. Debt management is your constant companion in your quest to be debt-free.

Debt Management Solutions
Debt brings with it a lot of psychological and mental stress along with the financial disturbance. Rather than hiding and not answering creditors’ calls, it’s better to approach an effective debt management solutions provider who can assiste you in dealing with your debt. Through counseling, devising a suitable debt management plan, negotiating and settling down debt, these debt solutions providers are there for you at every step.

Objectives of Debt Management Solutions

Reduce your stress. 
Debt management planners’ devise strategies to settle your debt and strengthen your dwindling finances.

Freeze interest rates and thus prevent your debt from accumulating.
Debt analysts try to reduce your interest rates by providing counseling and building a debt management plan. Be it through credit card balance transfers from high interest rates to lower ones, home equity loans, curbing extra expenses or even reprimanding you against using high interest credit cards too often, they adopt all means to reduce your interest rates. And reduction in interest rates will simply stop your debt from growing further.

Arrange one monthly payment scheme.
Very often we lose track of how many debts we need to pay off at the end of the month. Debt management offers the unique solution of debt consolidation where you will no longer miss any monthly payments. You just need to consolidate all your debts and pay them off through a single monthly payment scheme.

Make debt payoff affordable according to your income.
It’s better to make a minimum payment than non-payment or a late payment. Covering all your debt in this way will improve your credit rating. What’s more, based on your good credit rating, you may even be able to buy extra time for your debt repayment from your creditors.

Stop creditors from chasing you.
You don’t have to hide from creditors anymore. Debt management analysts are there to handle calls on your behalf. With a proper management plan and an improved credit rating, debt agencies prepare you to face your creditors with new confidence.

Restrict legal insolvency procedures. 
A Debt management plan covers many aspects of debt settlement. However, the basic objective of an effective debt plan is to stop the debtor from going bankrupt. Although there is no legal binding, creditors also prefer this as it offers them a much better return on their credit than a bankruptcy scheme.

How a Credit Card Balance Transfer Can Improve Debt Management

Introduction
Did you know that a credit card balance transfer might be a good method for paying off your debt? Keep reading to learn more about what debt management strategists offer as the reasoning behind this and the benefits associated with balance transfers.

Debt Management Planners Support Credit Card Balance Transfers
Debt management planners suggest that a credit card balance transfer can be a safe option for paying off high interest debt because it amounts to essentially borrowing from low interest credit cards. However, transferring a balance is not a simple procedure. There are several aspects to consider or it could end up becoming a costly affair.

Per a new guideline issued on February 22, 2010, all credit card holders are required to maintain higher interest rate balances by making payments above the minimum level. Business analysts might consider it an additional burden on debtors but it will actually facilitate balance transfer pay off and allow card holders to pay less interest. So in a way, it is a win-win situation for credit card holders.

Choose a Good Credit Card for a Balance Transfer 
Debt management counselors advise to check for certain things when choosing a balance transfer credit card, like the introductory rate, validity of the introductory period, post-promotional interest rate and balance transfer fee, if any. Also make sure to enquire about how you can qualify for an introductory interest rate if you opt for a particular credit card.

The Goal is to Save Money
The primary objective of a debt management solution is to save money, and a credit card balance transfer is no exception. The trick is to repay the entire balance of your credit card within the promotional interest rate period. This way you will make the most of the savings from the balance transfer.

Maintain a Healthy Credit Score
A credit card balance transfer might affect your credit score. A high credit balance indicates more debt and creates a negative impression among creditors. That’s why debt management counselors recommend doing anything you can to avoid a bad credit score.

Double-Check your Credit Card Balance Transfer
After you transfer your balance to a new credit card, it is recommended that you double-check to make sure the transfer was successful. If you have opted for a debt management plan (DMP), don’t forget to ask for a billing statement showing the transfer. If there is any mistake in the balance transfer, you can find out about it easily through the billing detail. It also will help you track any missing or delayed payment that could become a problem in your debt repayment later.

Five Hot Debt Management Tips to Get out of Debt

Summary:
The psychological burden of debt can be a source of continuous mental and physical stress. If continued for a long period, this stress can paralyze our lives by making us feel depressed and feeble. But debt management offers various strategies to combat debt and become debt-free forever.

Debt Management Solutions
Debt in this tight financial period is almost unavoidable, but there are ways to fight it off. With effective debt management solutions, you can become debt free and put your life back on track again. Here are five hot debt management tips on how to be debt free forever.

First Debt Management Tip
If you are already in debt, promise yourself not to get into any new debt. No matter how enticing a new credit card offer or car loan is, refrain from filling out any new forms. It’s worth it during this period of time when you are already in debt.

Second Debt Management Tip
Get into the habit of living within your means, starting today. It’s quite easy if you keep tabs on your expenditures. Similar to the way you keep track of your salary and bonus details, try to keep detailed paper work on your bills, credit card statements and loan payment statements, if any. This debt management tip will help you know how much you have to pay and will automatically prompt you to live within your stipulated budget.

Third Debt Management Tip
It’s a good idea to negotiate for better interest rates while paying off your debt. If you pay a lump sum amount for your mortgage, then take advantage of a lower interest rate. Read the contract details clearly to understand the advantages if you pay back your debt earlier than the stipulated time period.

Fourth Debt Management Tip
Transfer your balances to credit cards that offer lower interest rates. Many credit card companies charge only a nominal amount and some even offer the balance transfer for free. However, don’t make this an excuse to add another credit card to your list.

Fifth Debt Management Tip
Remember, debt management solutions analysts can only help you, but it’s you who has to be mentally prepared if you want to be debt-free. You need to follow a detailed debt payment system in which higher priority debt (in terms of higher interest rate) is paid off first and lower interest rate accounts follow. You can then incrementally add to the amount you pay for each of your debts every month. This will help you easily keep tabs on how much you have paid and how much is remaining.

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Fixed Rates vs. Variable Rates

A credit card can either pave the way for a good spending plan or make you a spendthrift drowned in debt. Hence, before accepting a credit card, a major factor for consideration is the type of interest rate you will pay on the credit card. There are two types of interest rates – fixed interest rates and variable interest rates. If you are confused about what kind of interest rate is right for you, it is important to know your options well.


Fixed Interest Rate


If you are a card holder with this option, you always know your interest rate. The credit card company can increase this interest rate after one year, but is liable to notify you 45 days in advance. You have the privilege of canceling the card and paying the balance at a much lower rate. 


Credit card issuers can increase your rate under the following circumstances:

• You have delayed a credit card payment for more than 60 days
• You had a promotional rate that has ended
• You have completed a debt management program your underlying interest rate has changed and you now have a variable interest rate

Unless it is for one of the reasons stated above, credit card companies cannot increase your interest rate within the first year. This type of interest rate can provide stability in making monthly payments because the APR (Annual Percentage Rate) remains consistent.


Variable Interest Rate 


A variable interest rate tends to fluctuate with the prime interest rate. Since it is linked to the underlying rate, it tends to go up and down. In this case, credit card issuers are not liable to send you any notifications of the changing rate. Unless you pay attention to your billing statements, you will not be able to know the change in interest rate on your credit card. However, if the credit card company increases the margin portion of the interest rate, they are liable to send you a notification in advance. The margin portion is the difference between the variable interest rate and the index rate. In this case, the rules of fixed interest rates apply. You also have an option to opt out of the interest rate.


The primary advantage of a variable interest rate is that if the interest rate goes down, your payment can become easy. If the margin portion is increased, you will always be notified. However, it is important that you pay close attention to the fluctuating interest rates. 


Choose Wisely


Choosing the appropriate type of interest rate is part of a good debt management plan. Determine your financial resources. If you can afford to pay a fixed interest rate, go ahead with that option. On the other hand, if you want to play with the odds and take full advantage of fluctuating rates, choose the variable interest rate.

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Pros & Cons of Credit Card Balance Transfer

Credit card companies are making big business these days. With the extensive use of credit cards by their customers, finance charges mount up very quickly. When such conditions arise, a possible solution is credit card balance transfer. This involves shifting one credit card balance to another credit card.

Credit card balance transfer is encouraged by almost all credit card providers because it attracts new customers. And for customers this is an attractive option because the new bank may offer lower interest rates and temporary interest-free periods.

So, what is the real deal with credit card balance transfers? Is this process part of a good debt management plan or just an offer to lure customers? When should you opt for a credit card balance transfer? To have these questions answered, it is necessary to understand the pros and cons of credit card balance transfer.

Benefits of Credit Card Balance Transfers

• Interest-free Period – You can save money from an interest-free credit card balance transfer. With a low APR (Annual Percentage Rate) and a sizable balance, a customer can save a considerable amount annually.

• Reduction of Debt – If the rate of interest is low, it implies that monthly payments can clear the outstanding balances sooner.

• Budgeted Borrowing – If the transfers are managed successfully, the interest rates can be minimized. Furthermore, this method of inexpensive borrowing can prove to be cheaper than a personal loan.

• Unsecured Debt – Credit card debt is unsecured. Since the lender does not have collateral, an alternative debt solution can be initiated if the credit card balance transfer fails to reduce debt.

Disadvantages of Credit Card Balance Transfers

• New Lines of Credit – The purpose of a credit card balance transfer can also have a contradictory effect. Sometimes consumers are given higher spending  limits with their new line of credit, which may result in additional spending that can destroy the very purpose of the credit card balance transfer.

• Availability – Interest-free credit periods are available only to those with a good credit history. Those with late and missed payments do not qualify for full benefits.

• Transfer Fees – Card providers usually charge a flat fee or a percentage of the balance to be transferred. This fee is added to the owed amount, implying that a customer may only be able to start saving on interest payments after a few months.

• Expiration of Introductory Rate – Once the introductory rate expires, the APR can become higher again, resulting in the debt situation returning to its earlier scenario.

A debt management plan is usually only effective when it is well thought out. If the credit card balance transfer is not promising enough to improve your financial condition, then it is better not to do it. On the other hand, a good credit history and an effective management of credit card balance transfers can improve your financial status. So, use the pros and cons above to assess and determine your current debt scenario, and opt for a credit card balance transfer only if it is capable of improving your current financial status.

You might also be interested in reading about – Debt Management Solution