Are you lost in multiple high-interest debts? Are credit card debts driving your sleep away? Are you thinking about quitting your business and just running away? Well, that is surely not the smart way out. Nor is bankruptcy, of course.
Sometimes, bad loan situations simply need a little nudge of financial reorganization. You can sit down with your banker and work out all the dues, balances and profits. It will take time, but it is a rewarding process. Most businesses end up managing their debts on their own, by just redistributing their finances. If you are not working on your business monies right now, try this –
- Prioritize your payments: start with the costliest credit card payment or the loan with the highest interest rate. Pay them off then move to other loans.
- Talk to a business loan counselor: professional insight can help you prioritize your payments more efficiently. Professional debt relief advice can actually mean no missed payments and penalties for you in the future.
- Take out a consolidation loan: this usually follows the second step. Collating your existing loans to one large amount will help you understand how bad or hopeful the situation actually is. You can take out a new loan and move on with new projects, while the consolidation loan company pays off your creditors.
Is taking out another loan the smartest idea?
Any sensible entrepreneur is likely to ask this question in a debt-laden situation. However, taking out a consolidation loan for debt relief comes with its own advantages. You will get a more amicable repayment term for an extended period. You will receive extra cash for starting new marketing projects. You will also receive a single flat interest rate, which will reduce your monthly payments. This is bound to increase your profit margin in the long run. However, a consolidation loan is a step towards financial freedom and not a destination.
How to get out of debt with smart marketing tactics?
Have you heard of Scott Oldford? By the time, he was 21, this Canadian citizen and entrepreneur were more than $726,000 in debt. He faced three huge failures by 2012, and he started to give up. Fast forward to 2017, Oldford owns a new business that now makes $7 million in profit.
All he changed was the way he marketed himself and his business ventures. He adopted online marketing as his mantra and made it his primary investment. Online marketing is not a fad. The new wave of marketing that eludes advertising agencies and print media is here to stay. Most companies with consolidation loans are utilizing the extra cash to reinvent their brand image online and set up social media profiles to pave the way for digital marketing.
Online marketing has helped thousands of businesses find their niche of buyers. It has the potential to connect you directly to the customers and help you get that next payment on time.