Tough Times for Small Businesses
Many American consumers are pleased with the recently passed Credit Card Accountability, Responsibility and Disclosure (CARD) Act but it does not apply to small businesses who use credit cards. There are positive steps that small businesses can take in this struggling economy to free up cash at the end of each pay period. Through debt consolidation, small businesses can eliminate some of the excessive interest charges, hidden fees, and annual costs of maintaining multiple credit card accounts. Consolidating multiple payments into one monthly payment can open up extra funds for small businesses. Consolidation companies can negotiate lower interest rates so that your payment dollars go further towards getting your small business out of debt.
First, gather up your credit card statements over a month and contact a credit counselor at a company such as debtconsolidationservice.org. They will assess just how much debt you have, how quickly it can be eliminated, and determine what your monthly payment will be. Most debt consolidation companies take a small fee as part of the payment, but even with this fee, your overall monthly payments are less than making minimum payments to each creditor. Additionally, you save time and resources by not having to make and track bank payments to creditors each month or hire an accountant to do it for your business.
Hope for the Future
What are the long term benefits of debt consolidation? Once your business has completed the program, which can be done in 24-36 months, depending on the amount of debt you have accrued, you will have the amount of your monthly payment available as open cash to invest back into your business in whatever way you choose. Running a more frugal and debt free business may seem more restrictive at first, but in the long term there is hope in freedom from creditors.