Get Out of Debt vs. Starting a Business

[PortCityProphet]

get out of debt cause unless your business is successful (I hope it is but most businesses fail) you're going to go into debt running for the first good portion of time.it takes awhile to see a profit on new business

 

[QuintessentialBM]

Double post

 

[QuintessentialBM]

i wana say debt, breh

can your business wait?

I dont think he'll ever come into money like this again.... what he should do is pay off his debt with his regular income and put the money away until he gets his personal finances in order.

 

[QuintessentialBM]

get out of debt cause unless your business is successful (I hope it is but most businesses fail) you're going to go into debt running for the first good portion of time.it takes awhile to see a profit on new business

There's that too.... High risk, high reward.

 

[Doobie Doo]

Do both, but if you had to pick one it's get out of debt. You much how much freed shyt life will give you with good credit? You can walk in to a bank with good credit and get a loan to start your business.

 

[L&HH]

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...

This is my take but Im more risk averse than most. It depends on the business though, more details would be needed to really make a decision.

 

[TL15]

This isn't take but I more risk averse than most. It depends on the business though, more details would be needed to really make a decision.

I think it's riskier to pay your credit for bills from the past that aren't directly hurting you in your day to day honestly. Sure, having a great credit score is great when you need a new car/house...but honestly credit is a "ghost". Spending your money on something just for a credit score/debtor isn't always the best situation. If you need a quick $1,000 your credit isn't going to help. Having the liquid money to use more toward your day-to-day is more beneficial to me.

 

[LEEeveryday]

Get out of debt.... debt is the devil

 

[QuintessentialBM]

I think it's riskier to pay your credit for bills from the past that aren't directly hurting you in your day to day honestly. Sure, having a great credit score is great when you need a new car/house...but honestly credit is a "ghost". Spending your money on something just for a credit score/debtor isn't always the best situation. If you need a quick $1,000 your credit isn't going to help. Having the liquid money to use more toward your day-to-day is more beneficial to me.

And if he isn't or , then he ain't getting anything from a financial institution in the form of a business loan.

 

[The Bilingual Gringo]

Even if you pay off the debt, you're coming out ahead regardless.

 

[Panther]

How much debt and what kind of debt do you have? What kind of business are you trying to start?

The usual consumer debt, car student loans, small credit card

Want to start a moving company, nothing major but an additional income stream. and i could see that bringing in the same/more than what i make now

If you pay off the debt how long will it take you to raise the money to start the business?

Honestly not very long, a year tops

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...

consumer debt

i wana say debt, breh

can your business wait?

yeah it can, but i would like to have something of my own, and not have to work for these cacs

 

[↓R↑LYB]

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

Hotep brother Panther. The ancestors led me to your thread and I'm thankful for guiding me here

I'm trying to start a school for gifted pawgs and I need about 400,000 to make our dream become a reality. Be a blessing and I promise you'll get a bigger blessing in return

 

[TL15]

The usual consumer debt, car student loans, small credit card



consumer debt

If you are going to be liquid soon...this is a no-brainer... credit cards, student loans, etc. are more "spooky" then they are practical. They don't hold you back from making money in the future. You can call a credit card company and say let's settle this for 55% of the balance OR I won't ever pay and they will balk.

Take your money now, invest in YOU while you're young, make more money later and then address the credit stuff. Liquidity and Youth are two of the biggest things on your side.

 

[L&HH]

I think it's riskier to pay your credit for bills from the past that aren't directly hurting you in your day to day honestly. Sure, having a great credit score is great when you need a new car/house...but honestly credit is a "ghost". Spending your money on something just for a credit score/debtor isn't always the best situation. If you need a quick $1,000 your credit isn't going to help. Having the liquid money to use more toward your day-to-day is more beneficial to me.

I was actually agreeing with you. My iPad turned "is" to isn't smh but yeah I'm with you 100%. Also completely paying off the debt isn't just going to turn your credit score around. You'd probably affect your score more by just making the payments. As far as the interests, the money you'd make from your business >>>>>>> those interests payments. Just consider that interests as an operating cost for your business. The time you'll gain by starting now verses paying off the debt then waiting to get the capital back (if you do get it back) to me is the biggest benefit. Money comes and goes, while time you can't get back.

 

[Will Ross]

If the debt is not killing you than start the business.