Stumbling credit cards-funded business startups are only the beginning of more personal finance problems. Here are some tips to clear the situation.
Entrepreneurs are often using their credit cards to fund the business startups. This is not advisable, but some budding entrepreneurs are taking the risks to go all-out with their business startup.
Unfortunately, bad things do happen. To a business startup, which has a low survival rate (some say 4 out of 5 startups fails within the first year of operation, some others say 9 out of 10 failed in 1 year,) funding is often the main problem it faced, regardless the potential it may have.
In today’s economic turmoil, business startups are struggling even more. More failed businesses are on the horizon.
Failed business startups often bring the business owners to personal bankruptcy. For those who are fortunate enough, they were left with pile of debts.
For those who use their personal credit cards to fund the startups, debts are devastating. Most without any collateral, credit cards are known to have high interest rates that could strangle you alive.
If you are a credit cards holder drowned in debts, you need find ways to reduce debt fast.
A couple of tips to clear business debts
Surprisingly (or fortunately?) clearing up business debts, in this case, credit card debts is not as difficult and obscure as you think:
- Do-it-yourself (DIY)
DIY is the most cost-effective way, yet doing it wrongly could slow you down in paying off your credit card debts. To DIY, you need to find pay off debt tips – I suggest you to look for them in the Internet, where wealth of information and widely available that you can access without paying a dime. Here’s the first and foremost thing you should DIY: budgeting – You need to find a way to arrange your personal finance in a way that you can pay off your credit card debts, instead of declaring for personal bankruptcy.
- Seek help from professionals and organisations
It probably costs you some money, but if you don’t know how to DIY, you need to find credit card debt advice from the right sources, such as accredited credit counselors, debt management professionals and debt settlement service providers.
You need to have the right mindset and knowledge before you DIY or seek help from others – You need to find the best solutions and/or the best professional/company to partner with, as taking the wrong advices from the wrong entities could be your worst nightmare.