Credit Card Debt Management Key Terms

Learn credit card debt management terms to help your finances

For a business, credit card debt management may mean finding a way to restructure debt so that it is more affordable to pay down. Businesses that are considering bankruptcy are often better off turning to other methods of reducing debt obligations. Business bankruptcy laws have made it more difficult for a business to get out of debt easily. For this reason, businesses should understand a few debt management terms such as debt consolidation loan, commercial debt counseling and debt reduction.

 

Debt consolidation loan

Debt consolidation loans may be a debt management option for some businesses. These loans are often based on assets owned by the business, such as real estate or equipment. The equity in these assets may be used to pay off credit card debt.
Try: Key Settlement Solutions provides more information about debt consolidation loan options.

Commercial debt counseling

Commercial debt counseling services aid businesses in restructuring their debts to make them more affordable to pay. It is similar to consumer credit counseling.
Try: Commercial Debt Counseling provides these services and explains what they are.

Debt reduction

Debt reduction is a type of credit card debt management, allowing a business to avoid bankruptcy. It is a process that allows the business to reduce how much debt obligation it has through the aid of a professional services provider.
Try: American Finasco Professionals provide debt reduction services and more information about using them.

Debt restructuring

Debt restructuring is the process of reducing or changing the debt repayment method. A business that is struggling to make payments on its debts may consider restructuring the debt through a negotiation process with the lender. This can help the business avoid bankruptcy.
Try: Business Capital points out how debt restructuring works and why it is beneficial.

Invoice factoring

Invoice factoring can be a method of managing credit card debt. A business borrows funds based on the invoice value they have sent to their accounts receivable customers. A third party lends the business up to 80% of the value of the invoices to meet accounts payable demands until invoices come in.
Try: Business to Business Capital provides more information on invoice factoring.

Business debt management

Business debt management refers to a number of services available to business owners that enable them to get out of debt. Debt management options may include settling the debt for less than is owed or restricting the debt.
Try: AmerAssist Turnaround Management provides more information on its website.

Copyright © 2011 Business.com, Inc. All Rights Reserved.

---