Owning a business is like spinning a thousand plates, each of them crucial to your success and each of them as fragile as china if they are left unattended for too long.
However, there is one plate, in particular, that is more fragile and unstable than the others and that is your finances.
The really tough pill to swallow, though, is knowing that this juggling act often leads to debt, which is no problem so long as you can manage it.
Saying that having any amount of business debt loom over your head is enough to eat into your focus because with debt comes stress.
Basically, what we are trying to say is, paying down your debt as fast as possible is the best thing you can do because a) it boost your financial freedom and b) it is the smartest way to make money. Of course, the big question is how:
Stack Em’ Up
You may have heard of the stacking method – or avalanche approach before – but what it entails is you paying the minimum amount on all your debts while investing all the extra cash you can afford on the debt with the highest interest rate.
Once you’ve paid that one off, you move onto the next one. This can be a tad infuriating because, well, the process can take some time before you start to clear all your debts. That said, it is the most financially-savvy and cost-effective of the bunch because you will be saving a ton of money on interest.
Crazy Not To Consolidate
The concept of debt consolidation is pretty simple: you combine all of your business loans with different interest rates into a single loan with a lower interest rate. That last bit is the key. How you go about this is up to you, so long as the interest you are paying is lower than before.
It could be that you open a line of credit through https://businesslineof.credit knowing that this is where you will find the best rates, or it could be that you speak to a specialist debt consolidation company and have them negotiate the rates of your new loan.
If this is of interest then we recommend you look at this list at https://www.thesimpledollar.com. What is worth mentioning is that the benefits go beyond just paying less interest. You will also find you save yourself time and the stress that comes with managing different debts in different places with different rates; you have one debt to pay now and that’s all.
Cut The Stupid Spending
That is right, stupid spending. If you’re in debt then you need to slash anything that could be deemed unnecessary as a means to help pay off your debts. This requires some focus and effort, but what you need to do is examine every area of expenditure and be ruthless in deciding whether it can be done away with or, at the very least, reduced.
We’re talking about things like take-away coffees, expensive client lunches, going first class on train and plane travel, even getting an Uber XL. Once you have done this, you then need to focus all that cash on paying off your debts as soon as you possibly can.