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Thread: Household or Business debt, which one is more serious?

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    Household or Business debt, which one is more serious?

    Most Debt Reducing Plans target business debt. Yes, debts and expenses have to be slashed, but why should businesses be the main target?

    I see many of my clients cancelling business related expenses, to bring “ overheads under control”. Killing the marketing budget, or reducing the telephone bill.Expenses that are business related could be you biggest mistake.

    How are you going to generate more leads/cash, if you don’t market? If the business phone is barred your leads are also going to dry up.

    Most debt ridden business owners go for the business, and reluctantly forgo their household luxuries. If a comparison had to be made betwwen household and small business debt, especially closely held companies or sole proprietorships, the household debts would invariably be higher.

    Look at it this way; We set up businesses to improve our lives, the business helps in attaining that house, car, expensive clothes etc. When we fall into debt we turn our sights towards the business, not the high mortgage or car repayments( funded by the business).

    Can we name one expensive item in the house that brings in money? Household expenses consume wealth, and Business expenses builds wealth.
    Be careful when you work out your budgets. Don’t kill the goose that lays the golden egg..
    Sean Goss We all are scared, but only few are brave.
    www.sgafc.co.za

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    Dave A (01-Jun-09), Debbiedle (01-Jun-09)

  3. #2
    Platinum Member Marq's Avatar
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    name one expensive item in the house that brings in money?
    A working wife??

    Ok - otherwise I give up - whats the answer?
    The cost of living hasn't affected its popularity.
    Sponsored By: http://www.honeycombhouse.com

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    Debbiedle (01-Jun-09)

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    Oh..the silent partner, that is not silent,most of the time
    Sean Goss We all are scared, but only few are brave.
    www.sgafc.co.za

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    Site Caretaker Dave A's Avatar
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    Sean, I take it you're not a subscriber to the "pay yourself first" philosophy, then?
    The trouble with opportunity is it normally comes dressed up as work.

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    No Dave, I pay the wife first...
    Sean Goss We all are scared, but only few are brave.
    www.sgafc.co.za

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    I find this post interesting: Telkom for one will inform you via an automated call to your home or office that if you do not pay within a time frame that you will face regrettable consequences. Telkom’s automated system will then inform you that you will be blacklisted and they will make your life hell.

    Anyway the same is true with almost any contract subscription. However an household can be destroyed and children will be victims to the debt collectors. Business on the other hand can be connected to households thus families and so it is more of the same thus just as serious...

    In the end the recession and debt collectors will prove one thing. They don’t care about anything all they want is your money.

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    Site Caretaker Dave A's Avatar
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    Well, you've had the goodies...
    The trouble with opportunity is it normally comes dressed up as work.

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