Get on With Growing A Business By Getting Out of Student Debt

paidWhen you operate a small office or home-based business, sooner or later you may be in the market for financing alternatives. If you need to establish lines of credit with banks and vendors, start by cleaning up your personal credit first.

Now that you are in business you may have come to the reality that the personal credit mistakes of your past do not magically fade away (Sorry, that is not one of the advantages to owning a business). Many entrepreneurs come face-to-face with this challenge when seeking capital from outside sources only to have personal credit to slow them down. In fact, one of the biggest credit issues that spills over from personal into business financial affairs is debt from student loans.

Steve Rhode, author with the Huffington Post recently published, How to Get Out of Student Loan Debt (you may want to read the points for yourself). One statement that Steve mentions that stood out for me is this:

Just because extended [student loan] repayment programs exist, that does not mean it is best for you to enroll in them.

This is worth noting because what it boils down to is most of these programs only serve as a band-aid to the real problem that exists — the habit of mismanaging credit obligations. Chances are that if you are not paying your student loan on time it is because the funds are simply not there.

Why? You may have dug yourself so deep in debt running a business, being underemployed, or failing to stay on top of the cash flow needs of the company, that paying off student loan debt is taking a back seat.  So what’s it going to take to get on the right foot and get your credit tight, again? It starts with a change of mind.

When your attitude toward debt takes a turn for the better you will desire to clean it up. This doesn’t have to mean that a large purchase is in the works but could simply be that you have come to a point of wanting a life of financial excellence. Since numbers are a means of measurement, you can use your credit scores to see how the decisions you’re making with credit are panning out.

As an business owner, how you manage personal and business credit accounts do matter. Even if you plan to run a company debt free, continue to build a credit history that speak volumes of excellence about you.

Assignment

Pull a copy of your free credit report  today to see what it tells you. Make plans to ensure that you are doing all that you are capable of. Note how you can become more financially responsible by tracking your bills (including student loan) amounts, their due dates and consistently paying on time.

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