Opening up a small business always seems like a good idea: it helps the local economy, provides jobs and lets you, the owner, do something that you’re passionate about. In fact, Freedom Debt Relief started out as a small business with only five employees.

Now, while we are a mid-sized company, our passion for debt relief has only grown even stronger. This is not to say that we have not endured our share of tough times. Every small business goes through rough patches. To paraphrase the hook of a popular Kelly Clarkson song, what doesn’t kill you, or force you to file Chapter 7 Bankruptcy, only makes you stronger!

Believe it or not, small businesses, like college graduates or middle-aged divorcees, can get in over their heads with credit card debt. One main difference between a business credit card and personal credit card are the consumer protections. The Credit Card Accountability Responsibility and Disclosure Act of 2009 has helped to keep consumer interest rates at bay and has given some degree of solace to the masses in credit card debt. Small businesses though do not receive the same treatment and can be subject to finance charges and interest well above the rates for personal cards.

There are pros to using a company card: for everyday purchases like staplers, computers and going to happy hour on company time, a business credit card lets you build points and get rewards which can go far. Just like personal credit cards though, these rewards are relative. That happy hour beer won’t taste nearly as refreshing if it’s paired with a 30% APR no matter how many points you get. In fact, it will likely leave you bloated and with a headache that will only get worse when your monthly statement comes in the mail.

At Freedom Debt Relief, we know the effort that owners put into their small businesses. If you’ve fallen onto hard times as a business owner and you have bankruptcy knocking on your front door, before opening it, give us a call to see if your situation could be helped with our Freedom Fresh Start program.  Trust us, you’ll be amazed at how much more enjoyable happy hour is without a bloated wallet.