Business Debt Reduction & Money Management - New Unique Approach Considering using a business debt reduction program? You are certainly not alone. Many people are hiring business debt reduction companies for help, but you can reduce your business debt yourself with the following tips. Here are 5 steps that will seem new and unique to a lot of people for small business debt reduction, larger business debt reduction, or personal debt reduction and other money management tips that you can do for yourself starting right now. To get you get started on the fast track with this, with a simple and unique step-by-step approach, claim your FREE Business Debt Reduction Solutions Guide shown in the resource box at the bottom of this article In the meantime, here are the steps in a general outline. Business Debt Reduction: Step 1 - Stop Using Credit If you haven't yet stopped using the credit cards, then the time to start is now. This is the single most effective action you can take to start your business debt reduction program. Lock up your credit cards and line-of-credit checks, and operate as if you don't have them at all. Work out how to make more income and pay cash instead. Business Debt Reduction: Step 2 - Stop Spending More Than Your Income Committing your future earnings to the credit card company, by purchasing something you don't have the cash for, puts you in the position of being an economic slave to the credit company. Before any purchase, ask yourself if you just want the item or if your company really needs it to increase your production of income. If you think you do need it, put together an action plan on how to make the additional cash to pay for it over a few weeks or months, instead of buying on credit. Figure out ways to increase your income and use it to pay both current expenses and pay off credit debt. Treat all revolving credit debt as a past due bill. Business Debt Reduction: Step 3 - Pay More than the Minimum Payment Required Every Month To really kick your business debt reduction program into high gear so it will be most effective, carve out a minimum of 10% to 15% of your income every week and use that money to reduce the debt. Set a target to pay 3 to 5 times the minimum monthly payment on every credit card every month. Set aside some of the payment money every week until the statements arrive. It's always easier to save small amounts over 4 weeks than to pay a big bill all at once. It is true that paying off the highest interest rate credit cards first will save you the most in interest charges. So, your business debt reduction strategy should include paying more on the highest interest rate card. Combine that with paying off low balance cards as fast as possible. As you pay off a lower balance card, use the money you were paying on that card to make bigger payments on the highest interest rate cards. Don't cancel a card if you are worried about your credit score. Just keep the card locked away and don't use it. But then again, your mission is to get out of debt and not use credit, so a ding on your credit score may not matter to you. Business Debt Reduction: Step 4 - Never Pay Late or Spend Over Your Limit The best planned business debt reduction strategy can be completely destroyed by getting hit with late payment or over-limit fees of $25 to $39 on which you'll pay interest. Plus, if you pay over 30 days late, that black mark stays on your credit record for 7 years - a harsh penalty to pay. Recently a Vice President of a U.S. bank stated that last year over 24 Billion dollars was paid out in interest, late fees and over-limit fees on credit cards. Do you honestly think the credit card company really cares if you pay late or go over your limit? Well, let me ask you this. If they didn't want you to spend over the limit they could have declined the charge, right? Business Debt Reduction: Step 5 - Cut Back on Expenses Paying off business debt requires as much cash as possible, as fast as possible. Take a good, hard look at where you are spending your income, and cut back on any expenses that do not contribute to the production of more income. Before you spend, figure out how much money that purchase is going to bring back in to you, your family or your business. If there isn't a substantial return of income back to you from making that expenditure, then seriously consider not spending the money. IMPORTANT NOTE: If you are a small business owner or a medium sized business owner, always promote your business to everyone - don't cut back on that activity. If you stop talking to your current and potential customers, your competition will talk to them, and let's face it, customers can be fickle, and forget all about you and your company. Just be sure you track the return you are getting on what you spend and be willing to change a promotional campaign that isn't giving you a great return. Correct business money management to ensure your financial survival does take more than a business debt reduction program, but this is a great place to start. There are other business money management steps that you can take to increase income, pay bills on time, have cash reserves for emergencies, increase profits and pay yourself more money. Who doesn't want that, right? So when will you start? p.s. And to help you get started with a simple and unique step-by-step approach claim your FREE Business Debt Reduction Solutions Guide and some other helpful tips and advice with links in the resource box at the end of this article. And feel free to call us at 1 + 727.448.1011 about your questions, concerns or comments or needs for your business expansion and money management support. This is what we are all about!
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