“This Is the Worst Business Deal I’ve Heard in a While”

Zander shops all the top term insurance companies to save you money. Get started at zander.com. My husband and I had a few opportunities pop up that we never thought would line up and happen, that we were able to move closer to our family. It was something we were really excited about. The hardest thing with it was we have a small business that we are in the process of selling. We have never lived by credit card debt with this business. It involved purchasing inventory with a credit card. And now with the selling of this business, we know we're going to be left with that credit card bill, but not the income from the business. And so we're kind of at a really nerve-wracking stuck point. Are you getting money for the business when you sell the business? We are getting a small amount because of the distance we were moving. We had to sell it quicker. Then we probably could have got a better price if the sale could have went longer. So that money is absolutely being put towards this. And then we are financing. What are the numbers? How much are you getting for the business? And then how much do you end up in credit card debt? We have currently got $15,000 from it. And then we'll continue to get another $20,000 over the next three years. So it'll be small payments coming in. How much credit card debt is it? We have $49,000 that we will have a credit card debt. Wow. So this business was a real failure. Yeah, we had just taken it over. So we really didn't have time to start recouping the funds of the initial investment at all. So you got $35,000 left in credit card debt that you're going to have to clean up. Exactly. So what are you going to be making at the new location? What's your new careers? So we will still have income coming in for a few more months that we're hoping to really pour towards that because there is a truck loan with the business as well. So we're trying to figure out if it's best to sell the truck or keep it within it since it's LLC. No, it's not an LLC. You signed personally for the truck. You signed personally for the credit card debt. I don't care if it's running through an LLC. That's only in your mind. The bank ain't going to sue the LLC. They're going to sue you. You are liable. No, you sell the truck today. How much underwater are you guys on that, Tracy? Do you know? So from what I've looked at, the loan is around $38,000 and then the cash offer estimate would be about $30,000. Oh, you're killing me. Okay. Well, it's $8,000 in the hole. Yeah. All right. We got $8,000. Okay. This is the worst business deal I've heard in a while. Well, it's not like $380,000. It's like $38,000. Okay. One more time then. What are you guys going to be doing for a living at the new location? So we both have different careers. We will be bringing in about eight grand a month. We do have everything budgeted. So we would have about two to three grand a month to play with out of our budget. Okay. It's kind of irrelevant how we got here. You have an $8,000 hole that you're going to have to finance on the truck because you're selling the truck and you have $35,000 in credit card debt and you make $8,000 a month and $2,000 a month to go towards debt on your debt snowball. How much other debt do you all have? Only our house. Oh, good. Are you selling it when you move? So we already sold and bought a new house. So right now it's just the one house. Okay. All right. Good. All right. Yeah. So, I mean, you're, you know, we have $43,000 in debt and we make $100,000 a year and let's pay it off and that's, you know, just run the debt snowball on it. Is there something wrong with that? Are there any good tactics for negotiating with the credit card to get like a lump sum payoff? Because we will most likely still have another $52,000 coming in from the operation of the business. Well, that'll be nice if it does come in to recoup the fact that you had to take this money out of your cashflow in the meantime, because you don't have to wait around on that money to come. You're going to go ahead and clear this debt now. No, there's not a tactic. The only way that people don't, the only people on the only way people accept less on the debt that is owed is if they don't think it's going to be paid. And the reason they don't think it's going to be paid is if you're not paying it on time. And so if you want to not pay your payments for six months, yeah, you probably could negotiate with them, but I don't recommend that you have the money to pay your bill. You should just pay your bill. Okay. Okay. Thanks for the call. Open phones at triple eight. No, I mean, no, this is just so feisty. The first call of the show, Dave. Well, it's okay. People make, listen, that is life. Everyone in the audience is like, yeah, Dave. Yeah. Listen, that's life though. People, that is a situation that happens. Let me recoup then. For a lot, for a lot of people. Come back to it. It could have been $38,000 in a car that we get, you know, we get that call. We get that call all the time. Here's the thing. When you operate a business, it's supposed to make money. Otherwise it's what called a hobby. Okay. And you don't buy a business that small and borrow $38,000 for a pickup. You used your business purchase as an excuse to buy a truck you wanted. That's what happened. And now it bits you in the butt. And you ran a bunch of credit card debt because you weren't running the business well, and it was losing money. You don't get to just go, oh, it's inconvenient for me to pay that now. A hundred percent. When I have the money, you pay your bill. No, I totally agree with that. But then- Sorry if I'm chippy on it, but that's just it. But they had the opportunity to move close to family. And so that decision is what caused them to sell the business, right? They had stayed- Well, let me just tell you what happened. They went way too fast on the whole thing. I agree. That's a great lesson. Yes. On both things, the purchase of the business and the move to family. If they just slowed down, sold the business for more money, they could have limited the damage they did when they didn't slow down and buy the business carefully. But now it's just like, we did this and we just go do stuff. And that's the kind of stuff that'll bite your freaking wallet in half, is you just start jumping around on stuff and it's slow down. Well, and it's the urgency. It's what we talk about even with, sorry, this sort of analogy, but people that invest in real estate, for instance, and they have so much. What happened to you? You have so much and then you get in trouble and then you end up selling for less. The urgency on anything, right? You can do real estate business. I've often said this about me, and I'll say it about others as well, is right after I get desperate, I get stupid. And that's what you're talking about. And so once you paint yourself in the corner and you realize you're going to get pain on your feet, then you get silly and you start ice skating in the paint. I mean, it's nuts. Zander is the best place to find term life insurance to protect your family. Visit Zander.com for quotes today.