Tips on how to avoid bankruptcy

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Bankruptcy is more and more common nowadays and the majority of the start-up businesses cannot even last for a single year. This statistic is scary and alarming, especially for people who have just started their businesses. And even though you can never be sure of anything, you certainly want to avoid and overcome bankruptcy. So if you want to find out some useful tips on how to prevent bankruptcy, just keep on reading.

Overspending is dangerous – cut unnecessary monthly expenses

If you have more than one debt, then it is best to start saving as much money as you can. Surely, you will not be able to lower fixed expenses, such as your car payment, rent payment, health insurance and other similar things, but at least try cutting down your unnecessary expenses. What does this mean? If something is not a necessity, better save the money and redirect them to debt payment. Exotic vacation, gym memberships, new furniture for your house or a new car, even alcohol and cigarettes – you better should cut them down and start managing your money a lot better. Moreover, if this tip does not solve anything, then you should start considering debt consolidation. This can help you in case you have multiple payments to multiple creditors, making it easier for you to repay the debts. A debt consolidation loan usually has a fixed interest rate, which is lower than what you were paying in the first place. Also, you should not only think about cutting your expenses but increase the amount of money that you make is also important for your business. This includes working more hours, doing freelancing or picking up a part-time job if you want because in the end every amount of money helps.

Attract new customers by using promotional products

While it is important to cut your expenses, so it is to invest in things that can actually help you to avoid bankruptcy. In other words, promotional products can really be a saving choice. The best part is that they are cheap, so you will not be bound to spend an excessive amount of money on them. By using promotional products, you will attract new people which are likely to be your future customers. And depending on the type of business that you are running, you can find promotional products such as branded pens, mugs, T-shirts and the list can go on.

If you do not have one already, then hire a consultant

Maybe you were on your own before, but if you want to stay away from bankruptcy, then you should start considering hiring a consultant who is specialized in revitalizing failing businesses. By hiring an insolvency consultant, there is no need for you to get rid of your management team and hire a new one. The insolvency consultant will know how to manage your debt in an organizing and efficient manner, and he will tell you about the pros and cons of each solution. Moreover, the insolvency consultant will talk to you about creditors, credit counselling services, and he will also help you with debt consolidation. Of course, you will need to pay him, but it will all be worth it in the end. The insolvency consultant will keep you away from filing bankruptcy.