Get Out of Debt vs. Starting a Business
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Do both. Pay down some of the debt, use the remainder to start a business. If the business is lucrative, you'll be able to use the funds to pay off the debt. Its akin to giving yourself a loan on the money you've already accumulated to help you launch the business.
This....
One very very important thing I should add...... If you are not ready to go into debt ..... dont start a business
richaveli83
Veteran
How much debt and what kind of debt do you have? What kind of business are you trying to start?
OfTheCross
Veteran
Im going to be coming into a nice lump sum of money soon and have decided that i am either going to start a business or use the funds to get out of debt.
Opinions welcome, and poll added
If you pay off the debt how long will it take you to raise the money to start the business?
Be debt free. The money you save on making those minimum payments monthly should free you up some cash per month and you can use the higher discretionary income to stack for the business assuming you're still in planning phase. Now if you have a business that's ready to go and you believe you can start making profit right away then it makes sense to consider using it for the business.
If you can get COMPLETELY out of debt and still have some money left over to start that business do that.
It takes a lot less money to start a business than The Coli seems to think it does, particularly if you're open to start anything. It takes more effort than money at first. Don't go into debt to start a business that you could run and build for cheap.
Pretty much any service business you start can be done for the low -- cleaning service, car washing/detailing, pimping, etc.
It takes a lot less money to start a business than The Coli seems to think it does, particularly if you're open to start anything. It takes more effort than money at first. Don't go into debt to start a business that you could run and build for cheap.
Pretty much any service business you start can be done for the low -- cleaning service, car washing/detailing, pimping, etc.
Field Marshall Bradley
Veteran
Pay off the debt..... save the rest.. apply for a small business loan....
kingdizzy01
ATXBBOY
go debt free and stack some more for a year before startin a business. its good to have money to fall back on incase the business doesnt do well, if u didnt finish college, id look into that or certs.
What kind of debt? IMO it's always more important to stay liquid than to worry about debt. Paying off all of your debt soon isn't going to make a HUGE change in your credit score (nothing life altering), and if you need the cash having good credit won't help you 
start the business...
start the business...
QuintessentialBM
GoldenAgeGamer82 - PSN ID
The smart thing to do would be to pay off the debt first, but I could see someone preferring to start the business first. If you can work around the fact that you're in debt, meaning no outstanding balances or someone is about to sue and put you in jail type debt, then I would start the business first. You have to understand that business loans and financing for business equipment is pretty much off the table, but everyone has a computer and a cell phone these days. That could work starting out.
You'll never know, in cases like yours, when you'll come across money like this again(or maybe you will, but you'll have to spend it on something else). Many business savvy people would start the business, then worry about the debt later (or when they start demanding their money back) (cough***white people***cough).
You'll never know, in cases like yours, when you'll come across money like this again(or maybe you will, but you'll have to spend it on something else). Many business savvy people would start the business, then worry about the debt later (or when they start demanding their money back) (cough***white people***cough).
the cac mamba
Veteran
i wana say debt, breh
can your business wait?
can your business wait?