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Question
I opened a restaurant in 2002 with a partner that had no credit. So I took out 4 credit cards the first year or so we were opened to help with expenses etc. I have always had great credit - still do -over 900. The restaurant is incorporated but of course I am the guarantor on the credit cards. My partner and I have split up so he is buying me out over the next 5 years. I ordered my credit report and score (940 - transunion) and noticed none of the credit cards associated with the restaurant showed up. I have now lost my job and am struggling with the minimum payments and was considering doing some form of debt consolidation for just the business cards. Is that wise or will it affect my credit score? Thank you so much for any help you can give me
Lori:
Thank you for your question. So your business debt won't likely show up on a personal credit report unless something triggers them to enforce collections on the payor or personal guarantor. In other words if you maintain paying them, it most likely wont' be a problem. However, if you are struggling to make payments due to job loss, the card companies have programs in place to lower or even suspend payments (called forbearance) until you can regain employment. You might look into this before looking into any other form of consolidation (as this would require you to find a low interest loan, apply and qualify without employment to roll everything into one payment) or look at any type of credit counseling or debt management as both would adversely affect your good credit. The latter should only be used in last resort, but in todays market your high score could be the difference between you and the next guy in securing employment if subject to a background check. Good luck, and if you found this answer helpful please take a moment to provide a favorable rating so more people can benefit from your inquiry.
Respectfully,
Christine Janklow
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Answers by Expert:
Christine Janklow
Expertise
As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.
Experience
My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.
Organizations
Provisors;Turnaround Management Association; Los Angeles area
Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."
Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising
Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.
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