😎 How to Tackle Your Debt This Summer
Let’s talk about a 4-letter word that so many business owners hate: DEBT.
If your debt has gotten out of control (past-due taxes, maxed out credit cards, capped lines of credit), you might wonder if and how you’re ever going to get out of it.
You view the interest payments as money you’re throwing out the window.
If a large check lands on your desk, you’re probably tempted to use it to make a lump sum debt payment without figuring out how it impacts your cash flow.
This can feel like you’re accomplishing something great at the time, but it could actually make things worse in the long run!
If you have debt that’s stressing you out, and you haven’t made a plan for tackling it with a financial professional, here’s where I recommend starting for the next 90 days:
Just make the payments.
Look at the statement, identify the amount you must pay, and pay it.
I know what you’re thinking, but hear me out.
I have this conversation with business owners multiple times per week, and most of you share the same worries:
“But Quinn, if I just make the payments, I’ll never get anything paid off and this debt will haunt me forever. It tells me right there on the credit card statement how much I’m throwing away by just making the payments! Don’t I need to start making progress by paying big chunks whenever I can?”
My answer?
If you’re really serious about getting out of debt, it’s going to be a multi-step process.
You’re going to need to get your accounting organized (if you haven’t already) so you can get a handle on what has happened in the past.
You’re going to need to get an understanding of your future cash flow so you know what’s coming in, where it needs to go, and what’s left over.
You’re going to need to figure out a realistic expectation for how long the payoff process will take.
Give yourself some time to figure these things out, and start by just making the payments.
It probably feels counterproductive, but it’s the first step if you want to make a solid plan to actually get out of debt.
If you want help making a detailed plan, schedule your Financial Clarity Call here.
