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Cut-throat competition and the appalling economy can leave your company bankrupt. In such a situation, you are usually left with two feasible options. One, you can file for bankruptcy, and the second option is to deal with the situation audaciously. Which of these options is more favourable depends on the extent of the financial damage your company has incurred. Many a times, the situation can be controlled and debts can be repaid, if you deal with the situation prudently. Here are a few tips that can help you combat your financial problems and clear off debts. Face the situation The first step is to figure out the extent of your financial crisis. Begin by assessing your latest bank statements and collecting all the misplaced pieces of important papers. Also, track down those bills you have been ignoring so far. The very next step is to prepare a list of companies you owe money. Calculate the exact amount you owe each company; this will help you to prioritise your debts. Prepare a budget Now, it's time to figure out how much money you can dedicate each month to debt repayment. For this, you can use Financial Services Authority's online calculator, which will help you calculate your total income and total expenses. The amount that is left over can be used for debt repayment every month. This way you will be able to formulate a repayment plan that best suits your requirements. Switch to zero percent In case of credit card dues, figure out if you have the option of transferring your debt onto a zero percent interest credit card. These smart cards do not charge you any interest atleast for an introductory period. However, you can only make the most of this deal by ensuring that you will repay your debt within the given period of time. If you know that you cannot afford to repay your debt in the given period, you can probably opt for a lower rate credit card. Go for personal loan Taking out a personal loan can also turn to be an effective strategy to beat down your debt or credit balances. A personal loan, indeed, makes quite a bit of sense if you need to borrow a huge amount. Generally, loans more than 10000 dollars come with lower APRs (annual percentage rate of interests) as compared to smaller amounts. Make sure you borrow an amount that fulfils your requirements or purpose. Borrowing more money than you need shall only lead to a debt-trap. You should always shop around when it comes to buying a financial product, since it is important to get the most competitive rate in the market. Apply the snowballing technique Instead of dealing with all the debts at one time, you should opt for a debt-busting technique called 'snowballing'. In this technique, you are required to deal with your debts one by one. Single out one debt and leave no stone unturned to pay it off. As soon as you pay off your first debt, then move on to the next. Gradually, you will be satisfied to see fewer creditors on your list. Seek expert advice Despite of your best efforts to sort out your financial problems, if you are not able to repay your debt, you should immediately seek an expert advice. An expert will give you better ideas to pay off your dues after analyzing your situation. Additionally, you can ask your creditors to provide you with a feasible repayment plan. Credit counselling helps you compare all your options for dealing with debt. It is the first step towards debt health. For more details visit this website.
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