Small Business Debt Relief
Posted on July 10, 2009 at 4:53 am
How much is it that you owe, anyway?
Posted on July 10, 2009 at 5:00 am
$27,500 in credit cards. It's quite the challenge, because the debt collectors are calling us, too, and business is really distrupted because of their calls. If I may ask, is there also any way to get their calls to stop?
Posted on July 13, 2009 at 12:56 am
Penny: a credit counseling service's Debt Management Program may work for you since you mentioned on your original post that you're having difficulty in regard to the interest rate. However, given that you have a higher debt amount, it would be more effective in your case to just settle the debt instead. In fact some debt settlement companies can be able to render the account as settled in full for as little as 12 months.
Posted on July 13, 2009 at 1:34 am
Okay, can you please explain how is the debt settlement approach different from the credit counseling? We really need to get the interest rate take ncare of, because it's so high, all our payments are going towards that. Can you at least educate me on how credit counseling works?
Posted on July 13, 2009 at 2:52 am
Debt settlement works best if all your debts are behind, and as mentioned earlier, a portion of your balance will be forgiven by your creditor. You'll be paying 40-60% of your total balance for a span of 12-48 months. If you decide to work with a debt settlement company, they will be negotiating for the "settle-able" amount on your behalf.
Credit counseling, on the other hand, also entails a method called a debt management program. Once you're on this program, you'll be making one consolidated payment to the credit counseling service, who in turn will distribute these payments to all your creditors. You may have a lowered interest rate once you're on this program, and possibly, all fees and other charges may be stopped.
Posted on July 13, 2009 at 3:24 am
Another good thing about Credit Counseling is that you'll be receiving specific and personalized pointers on how to deal with your debts and your current financial situation in general. Other than that it'll take as much as 5 years before the program would be officially over, due to the minimal interest rate that needs to be paid. I'm not 100% sure but the rate I think goes down to 15% monthly. Need verification on this though.
Posted on July 13, 2009 at 11:16 am
Small business debt relief can be difficult to find.
One thing- a balance transfer, if used appropriately, can be a very good thing for some people as you will pay off the debt faster (with a lower interest rate). Rhonda you asked why would anyone do that since it just "adds another debt" but technically it is not adding another debt (the balance does not grow when you transfer).
You will most likely have to pay a balance transfer fee though that lenders tend to charge.
Posted on July 13, 2009 at 4:22 pm
Do you think I could settle my business debt if my company is still up and running? And yes, small business debt relief is hard to come by.
Posted on September 10, 2009 at 5:44 am
Small business debt relief via debt settlement for a company that's up and running...well, what is your debt type, I know you said business debt, is it unsecured?
Posted on September 10, 2009 at 5:48 am
I agree with x and y, debt settlement as a small business debt relief is not based on the status of your business, but on your accounts. Like if they are unsecured or secured. If the accounts are already past due and amounting to more than $10,000. Also if you're not living in states that prohibit the professional debt settlement business.
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