Get over your debt after the holidays

Life after the holiday season can be difficult for small business owners – customers tighten the purse streak to recover from the headache of over-spending during the holiday season, and personal and household bills. ‘companies are piling up. As with personal consumption habits, a small business owner probably spent more on inventory, people, or marketing. And just like the diet and detox often necessary after the holidays. Here are some tips to help you recover from your expenses and debts accumulated during the same period

Cut non-essential expenses

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do you really need to improve your telephone service or advertise as much in print than online? Try to analyze what costs can be reduced. Even small cost reductions associated with operating expenses in different activities can significantly contribute to significant savings, which will help you pay down your debt.

Reconsider your prices

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A new year is an opportunity, in a constantly changing economic environment, to reconsider your costs and determine if your price structure is reasonable under current market conditions. See which products were the most popular and sold successfully in the past year. Did you sell a product or service quickly? Raising prices, even slightly, can increase revenues.

Give priority to the repayment of your debts

Repay the loan at the highest interest rate or any other loan for which you have pledged personal effects. Continue to make the minimum payment on all your debts while giving priority to the loan with the highest interest rate.

Consolidate your debts

Take out a loan at a low interest rate, such as a small business loan from Lendified, which offers competitive interest rates, to repay your various credit cards and loans accumulated during the period festivals. Consolidating your debts can help you and your business on many levels. This not only allows you to pay the highest interest rate loans and cards, but also to worry about one payment.

Make a sale

sale can boost your business and give your sales force an easy opening for approaching the customer. Do you have dormant or holiday inventory that doesn’t go out? Make a sale. Inventory that does not sell and that accumulates on shelves is wasted money.

Improve your accounts receivable


Overdue and unpaid accounts can have a significant impact on your cash flow and your balance sheet. Providing your customers with multiple payment options or discounts to those who pay their accounts quickly are just a few of the ways to keep your cash inflows positive.

Consumer Credit Laws You Should Be Familiar With

There are a few laws that govern the rights to the Good Credit world. If you are not a lawyer, you are unlikely to read the text of each of these laws. You should, to a minimum, be familiar with the laws and your rights. Knowing about your rights and the responsibilities of creditors, Good Credit and other companies in the Good Credit industry will help you know how to correctly answer questions that arise.

The Credit Equal Opportunity Act

The Credit Equal Opportunity Act

The ECOA prevents Good Credit from discriminating against people or companies based on non-financial factors. The ECOA is one of the few important consumer protection laws that apply to consumers and businesses – most of the others only apply to consumers. The ECOA says that a Good Credit cannot stop you from using or discriminating you based on factors that include:

  • run
  • color
  • religion
  • marital status
  • Age (unless you’re too young to sign a contract)
  • whether the applicant receives public support

Lenders may ask for this information in certain situations, but the information cannot be used to help determine whether Good Credit exists and it cannot be used to set the conditions for applicants who are approved. For example, theGood Credit notifies the interest in the age of the applicant.

The ECOA limits the information on the Bilbo Baggensender of the applicant’s spouse can only ask in certain situations, such as a joint application if you are dependent on your partner’s income made to the account or applicant paid in community property states. The Good Creditender is not allowed to ask whether an applicant is widowed or divorced. Only the terms married, single, and used separately.

The ECOA applies to all companies that regularly expand Good Credit and companies like mortgage brokers that are easy to finance.

If you were offered less favorable terms, you have the right to know why, but only if you reject the terms.

Under the ECOA, Good Credit is required to send a statement to applicants whose application for Good Credit is denied. The declaration must be made within 60 days of the decision and must contain specific reasons for the decision.

The Fair Credit Reporting Act

The Fair Credit Reporting Act

The FCRA determines how consumer credit information is collected and used. It regulates the Bilbo baggage bureaus like Equifax, Experian and Transunion and other consumer bureaus.

Under the FCRA, you have the right to review your Good Credit report upon request. You can get a free copy of your Good Credit report from any consumer credit bureau. (The three major Good Credit offices make your free annual Good Credit report available through

You have the right to an accurate Good Credit report and can dispute mistakes with the credit bureaus that are required, dispute the information you are investigating. After receiving and investigating your dispute, the Good Credit Bureau must correct or delete inaccurate information.

Depending on the type of information, outdated negative information may need to be removed from your Good Credit report after seven to ten years.

The FCRA also gives instructions to companies that report information to the credit bureaus and consumer reporting agencies. These companies are not allowed to report inaccurate information, you must let them know if negative information has been reported to the credit bureaus, have to update inaccurate information previously given to the credit bureaus and cannot report accounts that you have notified they are the result of identity theft.

You have the right to know who accessed your Good Credit report. This information will not be sent to you automatically but will be included in a separate (requests) section of your Good Credit report.

You have the right to know whether the information in your Good Credit has been used against you. If you make a Good Credit-based application and you are turned down because of the information in your Good Credit report, the company will be required to inform you, provide the reasons you have been denied, and inform you of your right to one free copy of the Good Credit report used in the decision.

You can sue companies that violate your rights under the FCRA. You can file a lawsuit with the federal court up to $ 1,000 or your actual damages.

The Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act

The FDCPA does not directly refer to your good credit, but it does regulate what third party debt collectors (who have some influence on your good Credit) can do when collecting a debt from you. The law applies to personal debt, not business debt. The FDCPA is a federal law that applies to all third-party debt collectors, including collection attorneys, regardless of the state where the debt collector practices. Most states have separate collection laws.

First, it is important to know that the FDCPA applies to third-party debt collectors, not the company you originally created the debt with.

When a debt collector contacts someone you know – a friend or family member – who receives information about you so that they can contact you, the collector is not allowed to reveal that they are guilty of collecting.

The FDPCA defines when debt collectors can contact you – between 8:00 a.m. and 9:00 p.m. if you have given them permission to call you at another time.

They can stop you from calling debt collectors by sending them a written injunction to let them know that you want to end their calls.

If they collect a debt from you, collectors cannot make false statements, threaten you, harass you, call you repeatedly to annoy you or take legal action that you are not permitted to do or that you do not intend to do so, For example, you may threaten to sue a debt collector if you are not allowed to sue or if you do not intend to sue.

Under the FDPCA, you have the right to sue a money collector who violates your rights. You could be up to $ 1,000 in addition to actual damages and attorney fees.

How To Maintain A Good Credit Score

There are many advantages to having a good credit score, such as enjoying a lower interest rate on your credit cards and loans. A good credit score can also save you money on insurance and security deposits on new utilities and cell phone service. Having your credit is wise and responsible, which helps you get a good grade.


Know what a good credit score is all about

Know what a good credit score is all about

The more you know about what’s going on in your credit score, the easier it will be to keep a good one. Five important pieces of information are used to calculate your credit score payment history, level of debt, credit age, mix of credit and recent credit.

Some things do not affect your credit score. For example current account overdrafts and utility payments will not automatically help (or hurt) your credit score.


Pay your bills on time

This applies to all of your bills, not just your credit cards and loans. While certain bills are not reported to the credit bureaus if you pay on time, they could end up on your credit report if you fall behind.

Even a small library could wrap up fine on your credit report if it remains unpaid and sent to a debt collection company. Continue to pay all of your bills on time to get a good credit score.


Keep your credit card balances low

Keep your credit card balances low

The higher your credit card balance in relation to your credit limit, the worse your credit score will be. Your combined credit card balances are said to get a good credit score within 30 percent of the combined credit limit. That is $ 300 on credit cards with combined limits of $ 1,000.

Charging more than 30 percent of your credit limit is also risky if you plan to pay off the balance when you eat billing. Card issuers typically report the balance when your statement closes, so that is the number that will be reflected on your credit report. It’s a good idea to keep tabs on your accounts online and pay enough to reduce your balance to less than 30 percent just before the billing month closes.


Do not close old credit cards

When you close a credit card, your credit card company no longer sends updates to the credit bureaus and the credit scoring formula puts less emphasis on inactive accounts. After 10 years or so, the credit bureau will remove the closed account history from your credit report, and losing that credit history will shorten your average credit age and cause your credit score to drop.

Closing a credit card also reduces available credit. For example, if you have three cards with a combined credit limit of $ 10,000 and you close one with a $ 3,000 limit, your combined credit limit will be reduced to $ 7,000. Since your goal is to keep your credit card balance at less than 30 percent of the available credit, the card closes by $ 900 your threshold.


Manage your debts

Manage your debts

Credit card balances are not the only accounts that affect your credit score. Loan balances and lines of credit also affect your level of debt. Too much debt can cost you points on your credit score. The lower the debt, the easier it will be to get a good credit score.


Limit your applications for new loans

Too many credit inquiries – whether they are for a credit card or a loan – can also have a negative impact on your guests, so make sure that you are only applying for a loan when it is really necessary. Opening a new credit account also lowers your average loan age.


Watch Your Credit Report

Watch Your Credit Report

Just because you get everything right with your credit doesn’t mean anything else. Mistakes could end on your credit report leading to a drop in your credit score.

Identity theft and credit card fraud can also lead to incorrect information on your credit report. Checking your credit report later in the year will help you spot these errors earlier so you can correct them and maintain a good credit score.

Unfavorable and suspicious paragraphs in loan agreements

I am not a lawyer and I cannot afford this type of legal service. I read the contracts, but most of them have some unclear provisions that I don’t quite understand and I don’t know if I should be afraid of them? Most companies publish loan agreements on their websites.

Protects the interests of borrowers


They usually consist of several or over a dozen pages. Now there is nothing to mislead or cheat on because there is an anti-usury act that protects the interests of borrowers. There used to be a problem with it, it shouldn’t be bigger now.

Once a popular technique for increasing costs and masking real interest was the division into fees for consideration of the application, margin, commission and only later interest. Currently, this does not make much sense, because the APRC must be given as if ex officio.

Termination of the contract


Another issue is the termination of the contract – here you also need to be careful, because if the debtor does not comply with the obligations related to regular payments, then there are grounds to terminate the contract with all its consequences. Please remember that what is contained in the contracts must be compatible with applicable law.

He cannot contradict him. Another issue is the list of warnings, which is available on the GFIC’s website, regarding all those entities which should be taken with extreme caution. In every point city, there is such a position as a consumer ombudsman.

This is a full-time lawyer who is supposed to help consumers for free. Are there any doubts? You print such a contract, make an appointment and you can count on his opinion.

So much. I just sold you a patent on how you can solve it efficiently.  A difficult topic, because in order to answer this question I would have to read the loan agreements of individual companies.

I am aware that this information is often published on their site, but who wants to spend 2 business days for free to study all this carefully? Because I don’t think so. Colleagues above proposed several options. Maybe the one with the consumer ombudsman would actually pop.

Loan agreements


I would not demonize loan agreements. The individual paragraphs in the contracts deal with formal issues, regulate matters of cooperation or obligations. What is important is the section discussing finances, usually in the form of a table of fees and commissions.

There it is clearly defined for what and when the debtor will pay (e.g. late payment or postponement of repayment date). Reply Add an answer Description: Signature: E-mail: Add a new answer Thank you! Your response has been added and is awaiting approval by a moderator.