Ugh, Debt!

Does the thought of debt make you sweat? Or make your heart race? Or do you ignore it? Pretend it isn’t there? But you know that one day, someone will come knocking. Does it feel so confusing and overwhelming that you just don’t bother with it?

Debt is a part of life for so many of us. It comes with burden, shame, guilt, stress, and avoidance.

It’s complicated.

But what if you could create a plan for your debt? What if you knew exactly how much you owed and to who? As well as when you would be debt free!

It is possible.

First, implement a debt freeze. No new debt until you understand your current situation. If you haven’t done the Keep-Reduce-Eleminate expense exercise, now is the time!

Next, here is a fantastic tool I use called the Debt Reduction Calculator by vertex42.com. This free resource is an excellent tool you can use to devise different scenarios to pay down your debt.

Now, sometimes debt is necessary in business. If you are planning on taking on debt you need to be prepared so ask yourself some questions first:

• Do I have a detailed plan for the debt? Any legit lender is going to request it.
• How will this debt increase revenues?
• What expenses will the business incur with the increased revenues?
• Is the business generating enough revenue to repay the loan?
• What are the terms and lending rate of the loan?
• What is the worst-case scenario?
• What are the pros and cons of the debt?
• Is there another way the business can obtain funds? Price increases?
• Be real: is this debt just a band-aid for previous poor business decisions?

Debt can be exhausting and stressful and drain the energy you need to run your business. Taking control of debt will alleviate the stress and empower you to make better decisions because you have a better understanding of your financial situation.

I know it sucks but you can do it! I believe in you. And trust me! You’ll feel so much better when you take control.