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After the start of the recession in 2008, a lot of small businesses died or suffered immensely because their banks had run out of money and were now recalling on those unpaid mortgages or business loans you took to expand your business. Today the situation has not gone any better. With the current European debt crisis, confidence in the markets is low, most credit is still frozen and banks refuse to lend. This could be a massive problem if you are a business and have to repay huge debts over the years. A lot of firms count on loans to finance their day to day activities, but this article is here to tell you that you do not need to go down the spiral even more in order to pay off the creditors. Debt consolidation can be less painful and much cheaper.
The best debt consolidation solution worth talking about is debt settlement or management. For one you are to avoid at all costs taking another loan to repay current debt. This just means that you will end up paying more and may even have to go bankrupt. Be aware that a lot of banks offer these types of loans; even the government promotes it as the best solution. The truth is it has never been a good solution; it just used to be the only one.
The best debt consolidation solution starts with having a professional take a good look at your personal debt issues and work out the best plan of action for you. Together you have to analyze them very carefully and see what type of loans you have, what you need to repay and what is vital for your business. You are bound to have long term loans with a small interest rate, try to renegotiate that with your bank. Make an appointment with your local bank manager and explain the situation, be honest. The bank has no interest in seizing you property or declaring you bankrupt as it will never get its money bank. The property market at the moment is at an all time low, so they will be more than willing to renegotiate the terms of your loan. To them that mean additional fresh money and business in the long run, to you it's a breath of fresh air.
The other way to go about it is through the court system. Believe or not if you cannot pay your debt that does not automatically mean that you need to go bankrupt. The simple answer is through prioritization. Normally this is very difficult to do, because even if you know what money is important to you and what is of secondary importance, it might be very difficult to negotiate that with the creditor. The court can do that for you. When you present your case, an advisor will be appointed to you and a court order will prioritize which you must pay first and which last. This is a very secure an inexpensive way to go about it because you will have the authority of the legal system behind you. In addition because so many people have debt problems in most countries such services are for free and do not even require a case to be made in court. Rather both sides speak to a mediator and decide what the best source of action is. This system has had enormous success in recent years and has saved a lot of firms from going under.
So if you have debt issues do not hurry and apply for a consolidation loan. Think smartly, try and renegotiate the terms of your loans with your creditors and if you must use the courts for advice on prioritizing your obligations. Just remember that solving a debt issue does not involve starting a new one!