• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Stumble Forward

Stumble Forward

Avoid Life's Financial Pitfalls

  • Blog
  • About
  • Contact
  • Resources

Dig Your Small Business out of Debt With This Ultimate Guide

January 7, 2021 by Christopher

Photo by Karolina Grabowska from Pexels

While a lot of people do consider some debt to be very healthy, it’s important to know that having too much debt is not good at all for you.

It’s essentially a weight around your ankle and it holds you back from accomplishing any long-term goals.

 

Business Debt and Liability

When serious debt becomes an issue, the first thing that you want to do is talk about liability.  When is debt exclusive to your business? Are you personally liable for anything?

While there isn’t always an answer that is truly straightforward here, you need to be able to determine quickly what kind of business debt can affect you on a personal level.

To begin with, if you are operating a sole proprietorship or if you are working as an independent contractor then your business will be considered the same as your personal assets.

You will be responsible for everything that your business cannot pay, and this ultimately means that creditors can easily come after your personal assets if you are not able to make the payments required.

The benefit of operating under an LLC is that your business will be considered as being a separate legal entity and this means that creditors are not able to touch your personal assets.

 

Hire a Lawyer

If you are yet to hire a lawyer, then now is the time for you to do that.

They can talk you through the options that are available, and they can also work with you to make sure that you are truly happy with the outcome.

If you are in debt because you had a crash with your business vehicle, then make sure that you hire truck accident attorneys.

 

Check your Credit Report

The very first thing that you need to try and do is get a lay of the land. It’s going to be impossible for you to tackle any problem, whether it is your debt or something else if you do not have a solid understanding of the facts.

One specific thing that you need to do is check your credit report. Even small things can influence your credit score, so you need to have a clear picture of what is happening.

While your credit score gives you a good idea of where you stand on a universal basis, it’s important to know that it also shows you what accounts you have. This is a great way for you to put all of your debts into a single location.

 

Snowball your Payments

Paying off your debt is very phycological. If you are able to get aggressive with the debt that you have and you do not begin to see results, then there’s a high chance that you will throw in the towel.

On the other hand, if you gain some traction and start to see some of your debts disappear then this will help you to build momentum. This is why a lot of experts suggest snowballing if possible.

If you want to snowball your debts then you can start by listing all of the debts that you have, from the smallest to the biggest. You then need to pay down your biggest, highest-interest debt. When you have done that, you can then pay off your others with ease.

Related

Filed Under: Debt Managment

About Christopher

Chris is a personal finance blogger with Stumble Forward helping people avoid life's financial mistakes and live a higher quality financial life.

Primary Sidebar

Get To Know Me

Hi, my name is Chris! I’m a personal finance and small business nerd.  Check out my blog where I share all of my favorite tips about saving money to running a small business.

As Seen On…

Top Articles

Categories

  • Business Opportunities
  • Business Tips
  • Careers
  • Consumer Advice
  • Credit
  • Credit Cards
  • Debt Managment
  • Education
  • Financial Independence
  • Food & Cooking
  • Health & Fitness
  • How To Guides
  • Identity Theft
  • Industrial
  • Insurance
  • Investing
  • Law
  • Lifestyle
  • Money Managment
  • Mortgages & Loans
  • Online Business
  • Pets
  • Product Reviews
  • Real Estate
  • Saving Money
  • Scams
  • Tech
  • Travel
  • Uncategorized

Related Blogs

Side Hustle Academy

Wallet Impact

Course Lifestyle

Welders Lab

Footer

Brilliantly

SAFE!

stumbleforward.com

Content & Links

Verified by Sur.ly

2022
  • Blog
  • About
  • Contact
  • Resources

Legal Stuff – Yep We Got That Too

Privacy Policy
Disclaimer for Stumble Forward
FTC Disclosure

Copyright © 2023 · Magazine Pro on Genesis Framework · WordPress · Log in