How to Tackle Your Debt While Running a Business

Tabitha Shiflett
October 07, 2019 - 10:30 am

There are two types of people in this world — those who think debt is healthy and those who avoid it like the plague. When it comes down to it, debt isn’t something you want to have, especially if you’re the owner of a small business.

Serious debt has the potential to hold you back from accomplishing your long-term financial goals. However, if you’re already in debt, you probably know that.

So, what are you supposed to do now? Here are a few ways to ditch your debt and get your business on the right track.

Check your credit report
The first thing you need to do is to figure out where you stand credit-wise. Don’t be afraid to look at everything. Check your credit score and go over the reports. Even small things can dramatically impact a credit score. Once you have a clear picture of what’s going on, you’ll know what needs to be fixed or corrected.

Pay it off
This pretty much goes without saying — the sooner you pay off your debt, the better off you’ll be. Don’t give up. If you have a serious amount of debt, it’s going to take a while to make that headache go away. The best way to do this is to list out every account you owe and order them from the smallest amount to the largest. Then start chipping away your debt one account at a time. If you start tackling the smaller accounts first, you’ll start to see some success immediately.

Talk with creditors
It may sound unrealistic, but sometimes you can find someone to work with you. See if you can get a better interest rate, or if you’re really in a bind, ask your creditor if he or she would settle for a percentage of the total amount owed.

Remember, debt isn’t evil, but taking on too much could ruin your business and your life. The best way to tackle it is to go in head first. Get all the information that you can and then work your way out. It might take years, but one day you’ll be able to breathe freely knowing that you don’t owe a penny to anyone.