Quick Business Tax Debt Advice if you’re struggling to meet your payment obligations
We’ve copped many interest rate rises this year (2023) and we’re bound to see more before the year has ended. This has left, and will leave, many business owners in a predicament they haven’t experienced before - managing their debt along with high interest rates.
Let’s be honest, we’ve had it pretty good over the last decade and I’ve seen many business owners enjoy the fruits of their labor. In reward for their efforts and successes they’ve purchased what I term “Toys” or assets that they desire or want, that aren’t necessarily a need. I’m talking about boats, caravans, expensive cars and the like.
As we begin to feel the strain of the increased interest rates, those business owners with any form of debt such as ongoing loan repayments, ATO debts, Superannuation or any other liabilities who are feeling the pinch now, will only feel it worse later in the year.
A quick and easy way to clear debt is to offload some, or all, of these “toys” if you have them in order to pay down your debt and get a little bit in front before you start to feel the pressure. My advice is to do it now, before the end of the year, while they are still attracting higher prices than they were pre-covid.
So to wrap up, if you’re feeling the strain now with the increase in interest rates or in the next 6 months you feel like you’ll begin to get pretty uncomfortable paying any of your liabilities, look at the assets you currently have and see what you sell now while the market value of them is still daily decent.
Move quickly now, clear some assets, get a reasonable price for them and use this to try and get ahead on your liabilities.
You can watch a video I created summarising the above by clicking here.