Money-management tips to help you stay out of the poorhouse
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Overwhelmed by maxed-out credit cards? Installment payments?Personal and business loans? And all this on top of day-to-daybusiness and living expenses? Many start-ups are. Sure, you canjuggle and struggle for a short time, but interest-only payments onsome debts and minimum payments on others may set you up fordisaster. An economic downturn, loss of a major client or anysetback can impact your credit rating, prompt lawsuits or forcebankruptcy. To avoid disaster tomorrow, take action today withthese tips:
Stop borrowing. You can't borrow your way out of debt.Instead, look into a bank loan or a line of credit guaranteed bythe SBA. Lines of credit, available through banks at about primeplus two, are ideal for getting through a cash crunch. If you needequipment or supplies only temporarily, ask suppliers for credit.They often allow a 30 to 60 day extension on payments. Interest,when asked for, is usually reasonable.
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