Debt Settlement Blog

When looking into starting a small business many business minded individuals think about leveraging their personal credit for that business. This can be increasingly dangerous especially if a partner is involved.

We recently had the opportunity to speak with two gentleman that started a business on personal credit cards. After three years of trying to get the business of the ground they finally gave up and filed for BK. However at the time of the BK rulings they had to take responsibility for the debts they had accumulated under there own names. Roughly 115k in credit card bills remained.

These two individuals agreed to split the debt however neither of them had an extra 2k/month for the payments needed to satisfy these debtors. After consulting with us we came up with a plan for them to settle the debt owed and reduce the payments that they needed to be comfortable with for the sake of their families.

Based on the total amount owed we were able to combine all of the payments and the total monthly payment including our fees was half of what they needed to pay out before consulting with us. We explained to they all of the risks involved with settling debt and the assured us that they are committed to sticking to the plan and following the instructions given to them.

With SBA loans and other means of small business financing available the last resort should be your personal assets. After all in a crisis situation most lenders that lend money to other businesses have an understanding that not all are going to be successful and that some losses will ensue. All small business owners should look into business to business financing before anything else.