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Friday, April 23, 2010

How Small Business Debt Consolidation Can Help You and Your Business

By Jeffrey J Mueller

Small business debt can cause lots of problems. It takes away the money and time you need to successfully run your business. When it becomes a burden to your company, it's time to think about small business debt consolidation.

Why Consolidate?

It may seem like it's better to just get the debt paid off. Persevere and it will go away eventually. Every small business suffers from debt problems because you need to borrow money to get started. But this debt can also cripple small businesses.

The great advantage of small business debt consolidation is that it lowers your monthly payments. This means you can continue to build your business without highly monthly payments getting in the way. Unlike individual debt problems, businesses offer more money in the future. As your business grows, it will have more equity, and your debt will become less of a burden.

How To Manage Your Consolidation

There are two ways to go about it. You can consolidate your debts yourself by dealing directly with your creditors. Your local library will have small business debt consolidation do-it-yourself kits that contain all the forms and contact information you need. Take an afternoon and head for the library, and they can help you get started.

For busy business owners that can't spare the time, another option is to hire a debt consolidation company to do it for you. This has several advantages. First, they'll take the work off your hands. Second, they are knowledgeable and experienced when it comes to managing debts. They can act as a liaison between you and your creditors. Explain to them what you'd like done, and they'll see what they can do. Sometimes the experience they have can really help.

The only disadvantage is that hiring a company for your debt consolidation costs money. Money trouble is the whole reason you need to negotiate!

A Few Things To Consider

There are some cases where consolidating debt isn't really worth it. If you have debts with low interest rates, it's probably in your best interest to keep paying them. Putting them in one place will extend the payment period, meaning you'll pay much more in interest over the long term.

You also have to consider the cost of consolidating debt. If you hire a company to remediate for you, you'll have to figure in this new expense. It may take a long time, and you may end up losing money on the deal by paying them.

Small business debt consolidation can also hurt your business's credit rating. This is something that varies widely, so ask your lender about it. Still, it may be worth lowering your monthly payments for a blemish on your credit. This is something to weigh against the financial advantages.

Consolidating debt has helped lots of small businesses get back to work. With this money freed up, you can start building your business and watching it grow. Consider the benefits as well as disadvantages before you choose small business debt consolidation.

Debt consolidation doesn't have to be a stressful situation, visit http://www.getdebtconsolidationinfo.com to get helpful information about consolidating debt and Christian Debt Relief

Article Source: http://EzineArticles.com/?expert=Jeffrey_J_Mueller

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