subject: Business Debt Relief - Using Debt Consolidation For Your Business [print this page] Business Debt Relief - Using Debt Consolidation For Your Business
Even when the chips are really down and you are up to your eyeballs in debt you always have options. Remember that and try to think productively, and plan what path to take.
The first key thing is to be positive and determined. The second is to decide which is the best route for you to take.
The most well known is a debt consolidation loan. This will allow you to consolidate your debts into one easy monthly payment. The interest payments will be greatly reduced. They can work very well.
However, there are some disadvantages. Firstly there are some heavy fees so your level of debt will go up, and they take a long time to pay off. This means that you will stay in debt for a long time, with all the negatives that that involves.
Also, because the debts are actually paid off by a third party, it means that in terms of your credit rating it can actually count as being a bankruptcy.
In our studies we have always found people to benefit far more from another method which is known as debt relief.
A debt relief program differs fundamentally from a consolidation one. Here negotiators from the company that is instructed to work on your behalf go out and actually negotiate with creditors to organize a discount on what is already owed. They make creditors understand your true situation.
The discounts can be very significant and sometime reach up to 80% off the original levels. However, if you decide to investigate this option further make sure you use a respected company, because you need to work with a company with the proper skills and experience, to get the absolute best deals available and be able to handle your creditors properly.
