Whether you’re a business owner or struggling to pay off personal loans, most people have made financial decisions they later regretted. Most of these financial decisions are debt and credit-related. According to widely circulated public data, around 80% of all Americans are in debt. That data alone tells you that you are not alone in your struggle so you need not be ashamed. What most people fail to do is take the necessary action toward achieving long-term debt relief.
The bad news is, much of that debt can come back to bite you, especially in present conditions. The good news is it doesn’t have to. Your answer to a debt-free business and debt-free life begins and ends with this article. Taking these seemingly simple keys to heart could change the course of haunting debt issues.
Chip Away at the Big Number
Seeing the total “payment due” can be an overwhelming number to digest, causing many to give up on the possibility of ever paying it off. Not only does this hinder your credit, but it can affect your company image and fend off potential customers.
One of the first mistakes people make is failing to gradually reduce debt in minimum payments. But, you would be surprised how much a little goes a long way over time. Each minimum payment chips away at the bigger picture step by step.
It is for this purpose that having a gradual mindset, as in business, is the most vital approach to any debt solution. As much as you desire to see that big number zeroed out, it’s important to understand debt does not disappear or resolve overnight. Getting focused on the big number rather than small installments is what drives most to discouragement in the first place. That number will take care of itself with each payment. You’ll gain greater encouragement as the fruits reflect themselves in your steadily increasing credit score.
Cut Unnecessary Expenses
Studies reveal that over 40% of Americans spend more than they make, thus contributing to the majority of debt struggles in the country. Much of the excess expenses can be resolved simply by eliminating unnecessary spending. These over expenditures can be found in your closet, restaurant bills, and other leisure costs. It doesn’t mean you have to stop these activities completely. But, you would be surprised how much you’ll save simply by scaling back a little on extravagant spending. Even something seemingly insignificant such as eating at home an extra day per week could make all the difference in the world.
Have an Organized Budget
This simply means don’t just take a mental budget like many do, have a budget of expenses and income that you can keep track of. Ever come to the end of the month wondering why you have more or less money than you thought you would? All that would be avoided by having one place to put all your bills and expenses in one place.
Especially in the case of business owners, a budget must be organized and easy to view. Once you set up your budget, you’ll be more likely to see areas where you could save money – and others where you could increase revenue. Then, you can start to consider companies like ProfitPay, which help with payment processing, fraud control, and other aspects of your business.
Publicly conducted surveys show that anywhere between 74 and 80% of Americans claim to have a budget. Therefore, it’s not necessarily having a budget that is the problem, but how you keep track of your budget that makes the difference. It’s important to know where your money is going and when. Aside from relieving debt, the savings down the road may reward you with a vacation you never thought possible.
Apply for a Debt-Relief Program
Contrary to popular belief, there are legitimate programs available for people who are in dire need of debt assistance. With some pandemic debt-relief programs still in effect, see if you too may qualify for government assistance for your debt solutions.
Request a Settlement
Requesting a settlement payment on a much larger balance is a possible option that most individuals are unaware of. Debtors would rather receive most or a portion of the big number than no payment at all. Expressing a sincere desire to pay the total bill can sway debt-issuers to cut that total bill down to a more accomplishable payment.
The Real Solution
Regardless of how grim your debt situation may seem, don’t give in to the discouraging lie that it is too late to pay off your debt. There are many options to pay off your debt. No matter what approach you adopt, all debt solutions take discipline or compromise in one or more areas. In debt, as in life, there are no shortcuts.