A Business Debt Management Plan is one way we can help you resolve your credit problems and repay your debt. A Business Debt Management Plan is recommended for those individuals who need more than advice and could benefit from a structured repayment plan. If you choose to establish a Business Debt Management Plan, our certified counselors will assess your financial situation, develop a spending plan, and create a plan for debt repayment.
A Business Debt Management Plan may help:
- Reduce Interest Rates
- Waive late fees
- Lower Monthly Payments
- Eliminate Collection Calls
Counselors are available 24 hours a day 7 days a week by telephone and Internet.
How to Know when a Little Debt is too much Debt
How do you know when a little “acceptable” debt becomes a potentially dangerous situation?
For some, the crisis is as clear as being faced with a decision between taking on more debt or letting their families go hungry. For most, the clues are more subtle. As a general rule, no more than 20 percent of your disposable income should go toward debt payments (not including your mortgage).
In addition, a “yes” to any of these questions should give a pause for thought.
- Is an increasing percentage of your income going to pay off debts?
- Is your savings cushion inadequate or nonexistent?
- Are you near or at the limit of your lines of credit?
- Can you only make the minimum payments on your revolving charge accounts?
- Are you extending repayment schedules-paying bills that were once paid in 30 days in 60 or 90 days?
- Are you chronically late in paying your bills?
- Are you paying bills with money earmarked for something else?
- Are you borrowing money to pay for items you used to buy with cash?
- If you lost your job, would you be in immediate financial difficulty?
- Are you unsure about how much you owe?
- Are you threatened with repossession of your car or credit cards, or facing other legal action?
While a single red flag is not a sign of impending doom, it is an indication that you need to make a change.
How to Determine Who You Owe and How Much You Owe
If you don’t know who you owe or how much you owe, you should obtain copies of your credit bureau files. All of your major creditors report, on a regular basis, all of their customer’s account information to the credit reporting agencies. Once you have the copies, you will be able to determine who you owe and how much you owe. To obtain your free annual credit reports under the FACT ACT, visit AnnualCreditReport.com; you can also call 877-322-8228. For help reading your credit reports, contact a trained credit counselor. Your counselor will review your reports with you and help you to determine a course of action to pay down outstanding debts and achieve debt relief.