Apple of my Eyes

Friday, February 29, 2008

Debt Management

Three years ago I started a new business. I bought stuff from Hongkong and sold them at a very affordable price on my store. Until I started to act as dealer, small retailers get their stuff on me and pay me back after one month. So I needed an extra capital for that new venture. I took advantage of the easy money loan I saw on ads even though the interest was a little bit higher compared to regular loan. I use my land certificate as collateral for easy approval of my loan. Because if I'll wait for the bank to process my loan application, it will takes time before I can have the money.

Until one inevitable incident happened, the mall where lots of my retailers located was set on fire. All my investments turned into ashes. I can't force them to pay me. They even got nothing.

My loan was already due and I already received demand letter from the lending investor where I took the loan. Because of the high interest rate almost half of my previous payments went only to the interest. I still have other properties but in the form of real estate and I can't sell them instantly to cover up my existing loan.

A good friend of mine said I really need the help of an expert in debt management this time. He told me an Individual Voluntary Arrangement or IVA can help me this time. And he was right. With IVA I was able to settle my obligations at lesser pressure on my part.

Posted by Ann :: 7:23 AM :: 0 Comments:

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