When it comes to lending, it depends on whether it’s personal financing or business related, and what assets behind are behind the loans. A lot depends on whether any security is over a property, if it’s a car, if it’s for your business or is it for your private debt, which could be your credit cards.
Really, the approach would be, as corny as it sounds, is to do the basics. With your advisor, work out what money’s coming in, what money’s going out, what you’ve got left and then work from there.
And then speak to the lenders and the lending specialists in those categories, be it personal or business, to determine what arrangement is good for you based on your situation.
Sometimes refinancing may not be the answer, but if it is, then you should always explore a number of different avenues. The approach is to get your house in order, and then speak to the right professionals who want to help you.
And then through their guidance, implement the strategies and the approaches they recommend and stick to the game plan. I too often see people who are in a mess and they go through refinancing or fix their situation, only to get out of control again and get into a bigger mess than they actually started with.
It’s pretty much like dieting; many people who go on a diet end up losing two to five kilos, but then end up put on 10 or 20 afterwards.
It’s the same thing with your finances. It’s about attacking the problem with a lot of sensibility and making sure you’re in a better position moving forward as opposed to providing temporary relief for something that’s going to balloon out later on.
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About The Author: James Huy Vuong is a CPA, Registered Tax Agent, Business Broker, Certified Exit Planner and the owner of Your Accounting Partners, an Associate of Negotia Group. Partnering with businesses from start to scale thru to sale.
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