-50k

-50k

Hello All,

I have listened Martin on radio 2 before and it has lead me here. Although my business is running well i have accumilated a £50 grand debt :eek: . I have £15 grand in equipment and £15 grand in stock another £10 grand went on the deposit for my flat. The rest i squandered. What advice could anyone give me as most of this debt is on credit cards and a loan, making monthly repayments on this crazy :mad:. My bank dont want to know about it as a consolidating loan from them would be too much. Another bank may consider with my parents as guarantors. im 28 and have run my business for two years. £45000 gross £25000 net.

Thanks then.

Billy aka -50k :rotfl:

Willsnarf1983

hey mate

the question i would ask is out of that £25k net how much are u paying urself? because then if its say £10k which may not be alot now but shud be more than enough thats £15k net u can be hitting ur debts with per year and even with interest i make that 4 years.....

also try snowballing ur debts, i have forgotton the link but a good person here will give u it no doubt


Will


just found it

https://www.whatsthecost.com and its on the left

bonnie_2

dont allow your parents to become gurantors, this happened to a friend of mine,her son lost his job and she is liable for the loan which causes hardship and resentment.no job now is 100% reliable.you can easily live on 15k like the rest of us and be debt free in 5years

-50k

Hello Will and Bonnie,

Will, i have to give myself £400 per week (20000+) to keep up the repayments. i have been doing the 0% interest on balance transfers for months and now my credit history is shot to pieces. and i now have trouble applying for credit cards, if i dont get a card in time i pay evil ammounts of interest! therefor paying nothing to my actual debt. plus if i have i quiet week i struggle again with repayments. i will look at that web address youve given me. and thank you.
Bonnie, thanks for your advice. It was a bank that suggested this, and you are right already my parents are willing but concerned. if anything happened... well. im sure i will not go down this route. But what are my options??? fold the company go bankrupt. i know nothing about this route either.

thanks again.
Bill

idiot_3

if the company itself is turning over a profit, why go bankrupt?

are the debts in your name, or in the comapny's, and most importantly, is it a limited company?

from reading your first post, you have 30k assests in the company, and have put a sizeable deposit on a flat. as i read it, that leaves you with infact 10k debt, nowhere near as bad as 50. (apologies if i have mis interpreted what you mean!)

is there any equity in the flat, so you could remortgage or sell it and downsize to clear some of this off?

if the business is turning over 45k, and 25 of that is profit, would you consider selling some of it to an investor, in order to free some capital to expand, and possibly pay off your debts more quickly?

Jockthearab

Sorry, I'm no business expert but I am led to believe that the 1st 3 years of running a business are usely the hardest & when many fail. You seem to be 2/3rds of the way there so I would try and not think of the 'folding the company' way...yet!

You don't say what line of business you do, so I may be wrong, but is £15k of stock not quite high? This may be funds you have tied up unneccessarily. Reducing this may help you pay back some of what you owe.

Are there any opportunities for you to increase your turnover? Perhaps better marketing?

Sorry I am not much help, but at least you have admitted that you 'squandered the rest' & you have come to the right place for advice! There are many knowledgable people on here who can help you through this, but they may need some more info e.g type of business, location etc. Do you have a business manager who you deal with at your bank who could advise on your particular problems? Is your Business plan up-to-date & realistic? Are you perhaps eligible for any grants or subsidies in your area?

On a positive note, you are only 28 running your own business, your destiny is in your own hands.

Good luck,

JtA

-50k

Thanks everyone, idiot you are right and thats what ive been trying to tell my bank manager that most of the money ive spent is assets in the business. I run a window tinting company shade ace ltd. https://www.window-tinting.co.uk i had problems borrowing from the bank or getting an overdraft because of being a limited company so i borrowed 15k from EGG to purchase printing equipment. plus i have recently flown to Latvia to get signed wholesale rights to sell a very popular style film. i needed to get another 15k of credit cards to get a full stock in the UK. which i am currently selling but until thats pick up i have to stuggle to make these repayments. My flat i brought pre-plan a year ago on completion its gone up about 10k but i will lose 3k if i sell in next 2 years because of my morgage offer.
thanks JtA too, the business is going quite well at the moment. i know im just starting out but i keep on trying to expand im probably doing things the wrong way but i have always been 'full steam ahead'. as i mention previously i want to move into distribution as well as the tinting service i already offer. and from what i have written above this is why my stock level is quite high. i have an online store going up this weekend and will also have ebay shop. i dont doubt myself on making this side of this business work. it just seems my only problem at the moment is keeping on top of my loan, morgage and credit cards. what i want is 50k loan with easy monthly repayments and a good interest rate. like on the adverts. but people keep telling me i would be a crazy fool to get a debt buster loan etc. i think its crazy keeping on trying to juggle my cards and paying £98 interest on one card £76 interest on another in the same month because my 0% bt offer ran out and i forgot to change to anther card. plus i get refused loads of cards cause of my constant juggling. all this juggling i should stop paying them all together and join the circus!

thanks again
Bill