That is all that needs to be said about this. Why can’t you read the writing on the wall? You have really mis-handled the whole BK.

When in a hole, stop digging.

Your idea of saving up cash to settle the debts one by one is risky, because you may get nasty surprises from the “sleepers.” I would not ignore them. Why don’t you give them a call and try to work out a payment plan, to try to bring the loan current? (Just don’t tell them you saved up a stash, as I’m sure they’d love to get their hands on all of it.) Also, the default interest rates on your loans are probably making the balance grow so fast that even if you make some payments you are still getting deeper into debt every month. Wouldn’t it be nice to be able to reduce the aggregate outstanding balance of your loans each month, even if it’s just a little?

By ignoring the lines of credit, you are flying blind. Strikes me as irresponsible.

Also, when you say “at some point it will have to be dealt with,” I hope you mean that at some point you will have to deal with it.

You’ve come a long way since the early days of this blog, but you still need to get these last pieces under control. Now go get ‘em.

Cheers,

Alan

I think you have the right idea. Tackle each account individually and cross it off your list. It will make you feel better to know that one is completely out, and only x more to go. Also, I agree with you that you need to start building assets for your business. I think you have a good start, just keep focusing on building more, leveraging what you can, and sticking to your goals.

On the consulting, I think for now if you can balance both, I would do both. The extra money is always good and building these relationships can be an asset of its own down the road. You never know.

I would say focus on your business, but if the right consulting gig comes around, don’t let it pass you by either. At this point, making as much money as you can will help to tackle your debt.

Keep up the good work!

I’m not talking about cash or stocks. I’m talking about more illiquid assets such as customers, software, ip, etc in my business.

I have already received settlement offers on some of the business loans, and I hope to be able to start settling accounts by the end of the year. My “inner CFO” is telling me to save up cash and try to settle these one by one.

What do you think?

You write: “Now that my emergency cash flow issues seem to be past (hopefully!).”

Can you give your loyal readers some detail on this? Are you making minimum payments on all your loans, and the ones that were in default have been reinstated? Or are you using the ostrich approach to some of them?

No question for me that your way out of the debt and into wealth is through your business. Perhaps you are already in a position to make the scheduled minimum payments on all your loans, but the problem is that some are in default and have been sent to collection. What progress on that front? Where did you inner CFO go?

Cheers,

Alan