Business debt consolidation is usually a sign that the business is having cash flow problems and in danger of failing.
It can precede worse things to come for a small business, because customers and suppliers alike lose confidence in businesses that cannot manage their finances. It's the same with personal financial management; debt consolidation signals that you are on shaky ground, and creditors and lenders lose confidence in your ability to meet your obligations.
"Today, there are three kinds of people:
the have's, the have-not's,
and the have-not-paid-for-what-they-have's.”
- Earl Wilson |
Managing your finances as though your family were a business can help you see the consequences of bad fiscal decisions more easily and help you evaluate the wisdom of a personal or business debt consolidation.
Financial Knowledge
It's not wise to go into business without any financial knowledge, and it's not wise to try to manage your family's personal finances without it, either.
Most people who are having financial difficulties simply don't have the information they need to make better decisions. They haven't learned how to budget, or save, or live within their means.
They don't know how to delay gratification, or how to gain gratification from financial stability instead of "things".
They may acknowledge that business debt consolidation signals financial instability, but believe that personal debt consolidation is the same thing as paying off debt.
If you want to be successful, you need to learn about personal financial management. The resources are readily available and don't cost a thing.
You can find all kinds of financial management information on the Internet. You can check books out from the library. You can find free classes at your community center or through local agencies.
The bottom line is that you have to educate yourself about financial management to be successful at it. The good news is you've already found us!
Financial Advisors
Every good businessman relies on financial advisors. Businesses usually employ bookkeepers, accountants and lawyers to give them financial advice.
You may not be able to afford a staff of advisors, but you can find people who will give you solid financial advice and keep you from making unwise decisions, like taking out an unsecured personal or business debt consolidation loan.
Look around at your friends and family. Who do you know that's good at managing money? Ask if he or she would be willing to teach and advise you about financial matters.
Look around your community and you'll find even more financial help. Bankers are a great source of free information. You'll frequently find people who are willing to give you free financial advice through community agencies or organizations like AARP or the Small Business Administration.
Sometimes it's easier to manage your family's finances if you think of it like it's a business; it gives you a little distance and removes your emotional involvement with money.
If you also educate yourself and surround yourself with a group of expert financial advisors, you'll quickly gain the ability and confidence to be successfully manage your money for the rest of your life. As a result, taking out a personal or business debt consolidation loan won't even be an issue.
"The highest use of capital is not to make more money,
but to make money do more for the betterment of life."
- Henry Ford |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
