Jean's Money Blog

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Businesses with Financial Difficulties

Posted by on Jun 17, 2013

Running a businesses, paying employees, investing in inventory and paying off vendors can sometimes put a business in financial constraints. Some business owners immediately think of bankruptcy as a solution, but bankruptcy is often not the best or only solution. Filing for Chapter 11 today is more difficult than yesterday. The 2005 bankruptcy laws are more geared towards forcing businesses to pay off their financial obligations instead of offering legal protection. The required paperwork is twice as much, and the costs for bankruptcy can range up to $50,000 for a small business. It’s always wise to seek debt counseling services before going ahead with bankruptcy. With debt counseling services, you can get a professional financial counselor to look over your books instead of a court appointed attorney.

Business Debt Restructuring

If your business is in a delinquent debt situation, a financial counselor at a debt counseling agency can assist you with business debt restructuring to help alleviate the financial distress. With business debt restructuring, business debts are assessed, and a plan is put in place to pay creditors while the business remains in operation. It’s often a better way for a business to get out of debt and keep creditors satisfied.

Debt Consolidation

Business debt consolidation is available for both small and large businesses, regardless of the debt amount owed. With a financial counseling agency, your certified counselor can help you establish a debt consolidation plan with your creditors. All of your business’s debts will be assessed and placed under one debt. The financial counselor will also negotiate with your creditors for lower interest payments and to waive any late penalty fees. They will also negotiate a repayment plan that is doable, so you can stay in business. Financial counseling agencies often have strong business relationships with banks, creditors and credit unions. If you’ve tried to negotiate with your creditors on your own and have been unsuccessful, it is likely that a financial counseling agency will have better results.

These financial counseling agencies can also give you advice on business operations, including money management and what clients to extend credit to. In addition to private consultation, they often offer free business workshops and business resources online.

Whether you’re a small business or larger operation, it’s best to know all of your options before considering bankruptcy. Unfortunately, many businesses that opt for bankruptcy usually wind up with additional debt.

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Paying Down Debt? Look to Extreme Cheapskates to Ramp up Repayment

Posted by on Jun 3, 2013

debt advice in new jersey

If you feel overwhelmed by your debt – like you just can’t take it any longer – you might want to consider a few techniques used by so-called extreme cheapskates, men and women who have taken a sometimes stringent or over-the-top approach to freeing up as much cash as possible to pay back crippling amounts of debt. Here are a four common high-cost items many extreme cheapskates focus on when they’re looking to raise cash or cut expenditures back to the bare minimum:


Maybe a car is essential for some people in very rural areas, but many men and women could cut way back on their usage by carpooling, taking a bus, riding a bike or even walking. In addition to the high cost of gas, cars also require costly maintenance and insurance as well as registration fees. Even those in rural areas can combine trips to the store with other errands and significantly cut down on usage.


The word mortgage is an Old French term which literally translates to “death contract.” While originally the term was coined to mean that the contract “died” when the debt was paid or fell into foreclosure, today it could mean something very different: Many men and women are lured into the dream of a big house – much bigger than they need – and a big mortgage that consumes a large portion of a family’s wages. Downsizing to a smaller home or even renting in some markets is a much wiser choice.


The cost of the TV might be a one-time deal, but cable, satellite and other subscription services can cost hundreds or thousands of dollars a year. What’s more, time spent in front of the TV is time that could be spent at a second job or learning job-enhancing skills. Eliminating the TV means you won’t be exposed to all those alluring – and potentially costly – advertisements. Use your free time to enroll in a debt consolidation and credit counseling program to learn habits that can get you – and keep you – out of debt.


Monthly subscriptions are costly, but most users also fall prey to buying ringtones, games, movies and other apps that can quickly add up. Consider a pay-as-you-go phone to get bare-bones communication without high costs.

While adopting many of these practices for the long haul may not be practical or feasible for many men and women, incorporating one or two rigorous habits for a short period and combining those habits with a New Jersey debt consolidation and credit counseling program like Credit Guard can help pay down debt a lot faster than you ever imagined. With debt consolidation, credit counselors can help lower interest rates so you can “power-up” your payments and pay down debt quickly. Credit counselors can also provide you with tools to make better financial decisions in the future. Not only will this combined approach help you pay down debt faster, but it may also help you feel more empowered – plus, you’ll learn valuable habits that can help you avoid going into debt again.

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