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Are there any legitimate Debt Relief Options for Small Businesses?

by Olufisayo
Published: Last Updated on
Debt Relief Options for Small Businesses

There are various kinds of debt relief options that can help you to solve your debt problems and pay off your financial obligations. So, if you have a small business and if you are having problems with the small business debts, you can try out the various debt relief options.

The different legitimate debt relief options are debt consolidation, debt settlement, getting debt help, and so on. However, you should try to know “is debt consolidation good” or is it the other options that may serve your purpose.

Legitimate debt relief options:

Almost all of the debt relief options for your business debts are legitimate only if you don’t try out some crooked way of getting relief from your financial obligations. Another thing that you need to remember is that you won’t be able to remove any negative listing from your credit report if it had been reported correctly.

So, you can try to consolidate your business financial obligations if you think that you have several debts with high-interest rates. With debt consolidation, the several financial obligations that you have got reduced to one and the interest rate on the debt lowers.

Thus, it becomes easier for you to pay off the dues. However, you should know that only the unsecured debts can be consolidated and the secured debts cannot be included in your consolidated debt.

You can also opt for business debt settlement as one of your debt relief options. In case of settlement, the outstanding debt amount gets reduced and you are required to pay only the reduced amount. Thus, this is one of the most sought for debt relief options. However, in this case, too, the secured debts cannot be included and settlement also hurts your credit score.

You are required to miss payments before the creditors agree to the settlement. As you miss payments, this gets listed on your credit report and your credit rating is further hit. Still, many businesses opt for this option as it directly lowers the debt amount. Another thing that you need to know is that not all creditors agree to a settlement.

Another option that can help you attain debt relief is getting debt help from professionals (debt counselors, debt settlement companies, debt consolidation companies, etc). Now, in this case, it is really important for you to get help from legitimate companies.

There are many debt relief companies that may scam you instead of helping you with your debt problem. This will rather aggravate your small business debts and the associated problem.

So, it is better to first check the legitimacy and reliability of the company. In order to do that, you will have to check if the company has an accreditation with the Better Business Bureau or the BBB.

The BBB is an organization that keeps a tab on the working of the various companies or rather almost all of the companies after they register with them.

BBB also maintains a rating and you should better choose a company that has A or A+ or A++ in rating. You should also check with your state’s attorney general if there are any complaints against the company and if the company has taken any steps in order to redress the consumer.

Other than this, it is also essential for you to check if the company abides by the laws defined by the FTC or the Federal Trade Commission.

For example, if the company asks for any kind of upfront fees either for settling or consolidating your debts, you should better avoid that company. You should also avoid a company that claims to remove any correct negative listings from your credit report. It is always best to get the help of legitimate debt relief companies.

Photo by Mikhail Nilov from Pexels

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1 comment

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[…] you can take, and some will make more sense than others. Modern business owners often decide to cut their losses and sell the debt to a recovery specialist. In most circumstances, they won’t pay more than 30% to buy the credit. […]

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