Small businesses play a very important role in uplifting a country's economy as it provides employment opportunities to the local people.
But now with the recession crushing down the economy, things has become pretty difficult for the small business owners to handle.
Since the small business holders take loans from banks and have many contractors, the recession made them suffer a lot as their profit margin started to decline and they were not even able to cover the cost of production so they were unable to pay to the their creditors and had huge losses.
Some of them even shut down their businesses or reduced their staff.
In this situation the owners of small business debts may think of going for bankruptcy but before going for bankruptcy you should first take into account the other debt relief options which are debt settlement program and debt consolidation loan.
Then you should analyze these options and then go for the one which best meets your requirements.
Bankruptcy causes too many adverse affects on the society and that is why it should be avoided as much as possible.
On the other hand, debt settlement program and debt consolidation loan are the new debt relief options introduced which are much better than bankruptcy as they do not create so many bad affects.
In debt settlement program you have to negotiate with the creditors to lower down their debts so that you can become able to pay and get rid of your liabilities.
This process becomes easier when you hire a debt relief service which can arbitrate with your creditors on your behalf.
They do it more professionally as they are trained to negotiate with creditors and thus they are likely to get a better reduction for you.
Besides that, debt consolidation loan is a type of loan which combines all the debts into a single loan; in this method you will also require the services of a debt relief firm as the combined loan will be on lower interest and longer repayment period.
This loan provides you with the advantage of making only one time payment each month.
You would not have to go to different creditors to pay their dues.
You will pay to your respective debt relief firm and they will distribute your payment.
When the deal is settled between the debtor and the lender it depends on you whether you have to pay in lump sum amount or in monthly payments.
However, you will have to pay fees to the debt relief firm for their services provided but it is not very high and your credit scores will be lowered but even those will be minimal.
There are a lot of benefits of these two debt relief option and you should attempt them as early as possible to save your business as they are not going to stay forever.