AmiSight 7/29: Pay Now or Create Problems Later

I spoke to an entrepreneur this week who told me she was working on a settlement with a lender to reduce a $150,000 obligation to $20,000. She was angry with how the lender treated her during Covid and adamant about her plan to have them pay the price.

She asked me, "Why would I ever pay them the total amount if I can get away with a lot less?"

Her strategy is short-sighted, in my opinion. This record will appear on her credit report or show as a loss on her financials later. It will catch up with her one way or the other.

I encouraged her to try and refinance the total amount into a long-term loan with low monthly payments. I hope she listens to me.