Small Business Debt Consolidation Planning

Any business can end up in debt, just as a person can. Obviously, we do not want to see that happen. The problem is that this is rarely something that we can control. There are many moments in the life of a company when the unexpected happens. That is especially the case in the event that we are talking about a small business since backup plans are rarely possible.

The good news is that there are always debt consolidation plans that you have access to. This is actually one thing that not many small business owners know. Using one can easily help you to put your hands on a loan that has just one purpose: debt consolidation. Alternatively, you can also talk with consultants (consider Today’s Growth Consultant click here) or get a regular small business loan.

In order to start your way towards proper debt consolidation, you will need to gather all your bill, loan and credit statements. This is necessary in order to properly understand the amount of debt that you are currently faced with. All the debt statements have to be considered.

The next step is categorizing the debt. When you review the statements, think if your debt has to be paid really fast or it can be postponed. Consolidating only some of the debts that you have at the moment is possible while avoiding the consolidating of others. As time passes, you can consolidate all the loan that the company has.

Now you need to start comparing interest rates, terms and conditions and fees that are associated with your debt consolidation options. This helps you to decide what option is available for you and what is really beneficial based on the situation you are in at the moment.

Getting the debt consolidation loan is tricky since many things will go through your mind. However, keeping cool is not that difficult. These are loans that are basically created especially for the situation you are in. Because of this, the interest rates are lower when compared with most other loans. When referring to terms, everything is basically associated with repayment dates associated with the debt that you have.

Alternatively, as already mentioned, you can go for the small business loan that is offered by a commercial or a private lender. Just as with a small business loan or a debt consolidation loan, you have to consider fees and interest rates, together with terms and conditions.

If you do not know that much about how to locate a really good loan for your business, it is really important that you talk with a debt counselor. This is something that can help you out a lot in identifying those options that are really good for you. There are actually many companies out there that are specialized in helping those that are in the situation you are in at the moment. Do not hesitate to talk with such a professional since his knowledge is so much higher than what you have at the moment. It is an advantage to always consider.

Debt consolidation to ease out the student loans!

While you have been pursuing with your higher education, you would have most certainly taken some loans. The loans could have been for small amounts or big amounts, and you would have been making monthly payments towards repayment of the loan. Whatever may be the amount of the loan you have taken, Student Debt Consolidation is the most ideal option because it helps you to bring down the amount of monthly payments. It is advised that you get acquainted with the working of this option. If you take the trouble of visiting a few sites, in the internet, you will be able to get as much details as you want about the working of this option.

If you are in the know of things about the system of working of this option, it will prove beneficial to you. There are different terms offered by lenders and the rates of interest too will vary from one lender to another. You should take the trouble of contacting some of them to find out their offers and how they will be beneficial to you. After collecting the details, you may think of contacting a few of them for purpose of discussion and negotiation. During your meeting with them, you should try to negotiate and get favourable terms. You should not be in a hurry to decide on the company with whom you are going to have dealings.

During the course of your discussion with these companies, try to get a detailed plan giving indication as to how they will deal with your present liability and how they are going to complete the student debt modification program. You should ensure yourself that you are getting the best rates and terms. Once they give their final offer, make it a pint to go through it with utmost care. If you need any clarification on any matter, concerning the modification program, please do not hesitate to ask for clarification.  There will be some fees or charges for the work these companies do for you. You should find out full details about them.

There is one more advantage in the modification program. For prompt repayments, these companies offer some amount of ‘bonus.’  You have to keep a watch for this offer and should avail the same when it is offered. All these go to reduce the amount of monthly payments. There are companies offering 1% concession in interest rates if monthly payments are made on due dates. Over and above these, they offer some discounts during grace period. With sustained follow-up, you will be able to get the details of such bonuses, concessions and discounts, etc. as and when they are announced. Only then, it will be possible to avail each and every concession which, ultimately goes to reduce your financial burden.

You have to be careful about pre-closure of your loan. Some of the companies charge a certain amount of fee for pre-closure of a loan. Some companies do not charge any fee for such pre-closure. So, it is better you get it confirmed, from your debt consolidation company that there will be no charge or fee if a loan is pre-closed. Now that you have all the details that you may require regarding the working of debt consolidation companies and the benefits and privileges they offer to the borrowers, the responsibility as well as the final decision rest on you. Once again go through the offers from different companies and after carefully analyzing the good and bad aspects of each offer, you arrive at a final decision with which you should not regret later.

Debt consolidation loans and debt settlement options

Debt consolidation
Debt Consolidation

Considering debt relief? It is no daydreaming anymore. The struggling debtors can easily lead a debt free life by going with several debt relief programs available to them. However, how sooner you can regain your financial freedom with almost nil impact on your credit status depends on the type of debt relief program you will opt for. Among different options available, we will only consider the two most popular ones – debt consolidation and debt settlement. Let us get to the chore of both these choices and highlight their advantages and disadvantages in more detail.

They key to make the right choice heavily relies on how good you are in assessing your current financial status. If you consult a debt relief company for suggestion, the first question you will be asked is about your income. It will also inquire about your expenditure pattern and how much of routine spending goes towards repayment of dues.

Defining Debt Consolidation Loans

A debt consolidation loan is taken out against all existing debts summed up together. If the debtors can manage to get a good deal, he will end up making a much lower payment due to down in original rate of interest and stretch of payback period. The catch is only the debtors with a good credit score can qualify for such loan.

Convincing credit status projects you in low risk zone and that assures the creditors about getting back what you owe to them. This encourages them to lower interest rate to such a low height that the debtors can easily afford it. Some creditors may also require you to place collateral. If you can do that, it will make the interest rate plunge further.  Debt consolidation applies to most of the debt varieties.

Defining Debt Settlement

Debt Settlement also involves negotiation with the creditors for a reduced payment. However, the entire process is quite different. Through a debt settlement scheme, the debtor in question sets up a separate account, known as settlement fund. The person then transfers all payments that are held back from meeting the dues to the account.

You can also hire a professional to present your case and negotiate with the creditors on your behalf. The negotiator can convince the creditors to let you pay off a certain percentage of the debt and the rest be waived. Compared to debt consolidation loan, a debt settlement scheme has more restricted use. It applies to only some selected personal loans and unsecured loans. You will never be an ideal candidate for debt settlement if you are loaded with a gigantic size of mortgage loan.

Both the options make an effective choice to help you out of debt issues. However, if we consider the impact on credit score, debt settlement will inflict a more negative effect. It is because; you are willingly holding back payment so that the creditor feel almost forced to agree to a settlement.

A debt settlement plan will expedite the process of debt relief but will damage your credit health in the most negative way. On the other hand, debt consolidation is a slow process but it leaves a lesser impact on your credit condition. Always weigh the cost and impact of both the options before making a decisive choice.

Personal finance guest post by peter form

Debt consolidation loans and debt settlement options

Debt consolidation – Satisfy the qualification criteria first

Debt consolidation undoubtedly happens to be one of the simplest ways by which you could manage to simplify your debt payments. Not just that, debt consolidation also happens to be an excellent way by which you can actually get rid of your debts, both secured as well as unsecured and you can also consolidate them with the help of a home equity or personal loan, or at best through a debt consolidation company.

Qualifying for debt consolidation

Now that you’re looking for ways to consolidate your debts, then it’s not just about debt consolidation that you’ve got to think of. It’s also important for you to determine whether or not you can qualify for a debt consolidation program in the first place. Take a look at the following steps and make sure that you qualify for debt consolidation.

1. Enlist all your debts: The very first thing you should do is make a list of all your debts. You should always divide this list into secured and unsecured. Secured debts obviously mean the ones guaranteed by property and unsecured debts happen to be those that are obtained without collateral.

2. Decide on the debts: The next thing you’ve got to do is decide on which debts you’re interested in consolidating. This is because it might so happen that you’re been approved for a certain amount only and hence you should have to choose the debts. The idea is to consolidate or get rid of those debts that have the highest balances or the highest rates of interest involved. Also, there are debt management companies that require you to have a certain balance so that you can qualify for their consolidation program.

3. Check on your credit reports: After that it’s time for you to pull out your credit reports and run a thorough check. It’s imperative that you know what’s there on your credit report before you actually apply for a loan.

4. Provide the necessary documents: It’s also essential that you have ready and manage to provide all the necessary documents like proof of income and a copy of your budget. This is because regular income is essential for qualifying. In fact, most lenders would like to see a copy of your budget as well.

Keep in mind the 4 criteria discussed above and you should be able to qualify for debt consolidation if you act accordingly and efficiently.

Debt consolidation – Satisfy the qualification criteria first

Seek Help Of Debt Consolidation Firms To Pay Off Your Payday Loans

Debt Consolidation Process
Debt Consolidation Process

All of us have gone through mid-month financial contingencies and it is then when we seek help of the payday loans which are nothing but short term loans that are lent to people with pressing financial needs. When you’ve racked up a huge amount on your multiple payday loans, you need not worry as there are ways in which you can get rid of high interest debt without hurting your credit score. The debt consolidation firms help all kinds of unsecured debtors get back on track by helping them combine their debts into a single monthly payment. While you can opt for payday loan help debt consolidation on your own through the debt consolidation loans, you can also take help of a company through which the debt consultant will work on your behalf. Check out the different ways in which the debt consolidation firms can assist you in getting out of debt.

  • The debt consultant assesses your finances: When you approach a payday loan debt consolidation company, the debt consultant will initially check your present financial condition. You just have to make sure that you give him all the details of the total principal amount that you owe, the interest rates that you’re paying and whether or not the payday loan lenders are legal in your state. Unless the debt consultant carries out this process, he won’t be able to give you the right kind of advice through which you can get out of debt with ease.
  • Speak to your creditors on your behalf: The debt consultants of the debt consolidation company will then speak to your creditors and tell them about the financial hardship that is barring you from making the timely payments. When you fall behind on the monthly debt payments, it often becomes a hassle to receive the calls of the creditors but when you get help from a debt consolidation company, all these tasks will be done on your behalf.
  • Convince them to lower the rates: The debt consultant of the debt consolidation company will convince your payday loan lenders to lower the interest rates and help you repay the entire amount in easy and affordable monthly payments. The lenders will then check your present financial condition and thereby agree to lower the rates through which you can repay your debts in lower monthly installments.
  • Accept single monthly payments: You just have to make a single monthly payment to the debt consolidation company instead of splitting your payments among multiple payday loan lenders. You just have to remember the due dates of a single lender and they will soon disburse your payments among multiple lenders to make you debt free.
  • Your credit score will improve: Although you might have hurt your credit score by falling back on the payday loan payments, you can improve your score by getting back on the monthly payday loan payments through a debt consolidation company. Just make sure that your payments are reported on time to the credit bureaus.

Therefore, when you’re spending sleepless nights wondering about the rising payday loan debt, seek payday loan help debt consolidation. Consider the benefits to motivate yourself.

Seek Help Of Debt Consolidation Firms To Pay Off Your Payday Loans

Should You Go for Bankruptcy or Debt Consolidation?

Bankruptcy or Debt Consolidation
Bankruptcy or Debt Consolidation

When you’re drowning in debt, you have two options—you can either file for bankruptcy and let yourself drown more on its risks, or you can apply for a debt consolidation agreement which is like clinging on a slippery rock to be saved. Both are not easy options. So when there’s a need to choose, you need to weigh your options carefully.

Bankruptcy vs Debt Consolidation

First, you have to identify what both terms can do for you:

Bankruptcy is a legal procedure of declaring your inability to continue paying for your debts. Hence, you are requesting for additional protection against your obligations under specific conditions you and your creditor have to agree upon.

The most common bankruptcy types are Chapter 7 and Chapter 13. Both have underlying conditions that you would also need to weigh to get the best solution for your bankruptcy issues.

Declaring bankruptcy may eliminate all your debts or may restructure the payment depending on your capacity. However, it will greatly affect your credit rating. Once this happens, you will no longer be eligible for other mortgages or credit accounts for at least a year or two. Furthermore, filing for bankruptcy requires hiring lawyers, which will obviously not come in cheap.

Debt consolidation loan, on the other hand, is an option to use a loan that will pay off all your other loans or debts. Through debt consolidation, you will be paying off your debts in a more reasonable rate. However if you are near bankruptcy, there’s a very small chance that you may be qualified.

Which option should you choose?
Nevertheless, to help you identify the best option, here are some tips:

  1. Assess the extent of your indebtedness by checking your credit report.
  2. Determine the total amount of your debt, including the outstanding and for-collection balances on your credit accounts.
  3. Calculate your total income and your monthly income from all financial sources.

If your income is lower than your basic expenses, then a settlement will not work for you. This is because you can barely pay for what you need and adding another debt will only trouble you more.

If you are planning for bankruptcy, you would have to compute for your average monthly income and compare it with the state median income. This will determine whether you are qualified for Chapter 7 or 13.

– Check the underlying conditions and their effects on you for both bankruptcy and debt consolidation loans and agreements. If you can contact an expert for a more reliable suggestion, do so.
The options you are given can save you, but it does not guarantee that things will be back to a better state. The best cure is still prevention. So if you don’t want to get into a tight situation, don’t be too loose in spending.

About the Author: Thirdy Rosales is doing marketing consultation for This financial institution provides assistance to some personal monetary issues such as dealing with bad credit loans, providing debt consolidation loans and handling bankruptcy issues. You can follow him on Twitter @Tweetendshout.

Should You Go for Bankruptcy or Debt Consolidation?