Types of Business Debt Relief

Series Summary

Credit is the provision of resources by one party to another party in which the second party does not reimburse the first party immediately, thereby generating a debt, and instead arranging either to repay or return those resources at a later date. The first party is called a creditor, also known as a lender, while the second party is called a debtor, also known as a borrower. Common forms of consumer credit include credit cards, store cards, motor finance, personal loans, retail loans and mortgages. In this free video series, a budget analyst provides debt management tips for a person dealing with credit card debt. Learn how to negotiate and pay off credit card debt, how to avoid credit card debt and how to use grants to consolidate debt. Find out about types of business debt relief, how debt consolidation works and what causes debt. Improve financial planning habits and personal finance skills with this advice on managing money.

Video Transcript

"Types of business debt relief are similar to those for personal debt. There are three choices. The first would be a debt consolidation loan. You would look for a lender who would be able to loan you enough money to pay off all your creditors. At a lower interest rate. Which would make your payments lower. And virtually free of more money in the business. So that you can keep your business running. Another would be to negotiate debt. Get your creditors, the ones that you need to negotiate with. Come up with a plan. Something that you can offer them. A payment plan to get your payments, maybe even lowered. Your interest rates lowered. To get those debts paid off. Critical and not recommended would be bankruptcy. By doing bankruptcy, all your, you're cleared off all your debts. However, it puts a black mark on your record. And you are therefore, virtually unable to obtain any future credit."