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7 safe borrowing tips to keep debt in check

Keep business and personal debt separate
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Keep business and personal debt separate

Using your personal credit card to keep your small business afloat can be a risky venture, says Jessica Cecere, regional president of the CredAbility of Palm Beach County, Fla., a nonprofit credit counseling agency formerly known as Consumer Credit Counseling Service.

"If your business fails, so will your credit personally," Cecere says.

Borrowers also should be cautious when becoming a personal guarantor to take out a small business loan, she says. If the small business defaults on the loan, the lender can claim the borrower's personal assets.


 

 

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