Being in debt is one of the most overwhelming things to deal with. When most people are in debt, they only focus on how to repay it and not borrow more money for other projects. However, did you know that you could start a rental business to get out of debt? Debt shouldn’t prevent you from pursuing a venture that can streamline your finances. Although it’s challenging, it’s possible. Here’s how to start a rental business to get out of debt.

Identify Your Rental Business Niche

There are many rental businesses you can get into. The most important question is how profitable it’s likely to be. Ask yourself if the business can help you eliminate debt. Research the demand for whatever product you want to sell. For instance, the business of restroom rentals is one to consider as the need for portable restrooms keeps increasing.

With that said, you have to conduct market research. Where are these portable restrooms needed? They’re needed at weddings, corporate events, concerts, marathons, and much more! How many would one event need? According to the Knot, people are required to rent one bathroom stall for every 25 wedding guests. That means a wedding with about 200 guests would need 6 to 8 bathroom stalls. How do you plan to charge? For any rental business you opt for, ensure there is a need for it and that you can make a profit to help get out of debt.

Explore Your Finances

Starting a business requires capital. Unfortunately, this is tricky because you’re already in debt. The good news is that, with a good business plan, you can find a bank or investor that will give you the loan you need. For instance, your idea might be starting a car rental business. This business faces a lot of biases which can be a stumbling block in your pursuit of a loan. According to Drive Knowledge, every year, there are about six million car accidents in the U.S. That is such a huge number because your assets are at risk. An investor will want to know how you plan to protect yourself from such risks. You can do that through insurance coverage and being careful about the people you rent cars to. Give the bank or investor some confidence that their money is safe to increase your chances of getting the loan.

Choose a Location for Your Business

It’s important to find a location with a growing population and strong economy. How can you expect to make money if you don’t have customers? Plus, getting out of debt is impossible if you aren’t making profits. Take the example of starting a rental property business. Such a business can lead to positive cash flow, but only if you have customers to rent out to.

Check whether there’s demand for rental properties in the area where you want to start this business. For instance, the population of Birmingham City in Alabama is 192,557. In such a place, you can expect demand to be low, considering that real estate usually performs well in large cities with a growing population. With that said, the population may be low, but if the supply of rental properties is also low and the demand is high, your business can thrive.

Have a Debt Repayment Strategy

You’ll be expecting the rental business to generate income. This income is what should help you get out of debt. Create a debt repayment plan and stick to it. What percentage of your income will go towards repaying and reducing the debt over time? It can be 10 or 30%. Choose a reasonable figure that allows you to meet the other needs of the business and pay the debt at the same time.

If well managed, a rental business could be the solution to eliminating debt. You can get a steady source of income that can help you get out of debt gradually.

In the aftermath of a disabling injury, overcoming the resulting financial burdens may seem like an uphill battle. However, it is possible to beat debt and regain control of your financial future with the right strategies and support. This article will explore practical and effective tips to help you navigate the challenges and achieve financial stability after a disabling injury. Read keenly and be confident of finding much-needed help.

1. Seek Support from Social Security Disability Benefits

When a disabling injury hinders you from working, you should consider seeking help from Social Security Disability benefits. According to the Center on Budget and Policy Priorities, social security programs financially benefit 8.2 million, including 104,000 spouses and 1.4 million children. These benefits can alleviate some financial burdens for a more stable financial future.

2. Explore Remote Job Opportunities

The internet has opened up the world of remote online jobs, allowing flexibility and independence in employment. Pursue online jobs in diverse fields that match your skills and interests, such as online tutoring, virtual assistant, content writing, graphic design, and programming. Regrettably, according to Statista, approximately 60% of Americans with disabilities do not have internet access. If you’re part of the statistics, you are missing out on the tremendous earning potential the Internet offers. Consider installing the internet in your living space and enjoy the convenience of working remotely.

3. Communicate with Creditors and Seek Assistance

Don’t hesitate to communicate with your creditors if you find it challenging to meet your debt obligations due to your injury. When you explain your situation, the creditors might offer potential options to reduce the burden, including reduced deferments and hardship programs. Many creditors are willing to work with individuals facing financial difficulties, especially when presented with genuine situations. Additionally, seek assistance from nonprofit credit counseling organizations, which can guide debt management strategies and lead negotiations with creditors.

4. Create a Realistic Budget

When dealing with debts, it’s important to assess your current financial situation carefully. Your assessment should involve evaluating sources of finances, monthly expenses, and outstanding debts. A precise assessment will help you identify areas where you can cut back or adjust your finances to free up additional funds for debt repayment. For example, consider reducing non-compulsory expenses such as eating out, entertainment costs, and subscriptions.

5. Your Insurance Cover Can Offer a Relief

Accidents happen unexpectedly, disrupting our lives and leaving us vulnerable to various challenges, including financial burdens. The National Safety Council’s data show nearly 2.5 million individuals were affected by disabling and non-disabling injuries resulting from motor vehicle accidents in 2021! This underscores the need for proactive measures like getting comprehensive insurance coverage. Your insurer will cater to your costs of medical treatment, rehabilitation, and daily living finances, enabling you to navigate the aftermath of the accident with peace of mind.

6. Consider Debt Consolidation or Settlement

Debt consolidation or settlement programs can be viable options for individuals struggling with multiple debts. The former involves combining all your debts into a single loan or credit account, typically with a lower interest rate. Doing so allows you to simplify your repayment process and potentially reduce your monthly payments. On the flip side, as part of a debt settlement, you can negotiate with your creditors to settle your debts for less than the full amount owed. It’s a suitable option if you can’t meet your debt obligations and must reduce the total amount owed.

Note: These options may have potential drawbacks, such as the impact on credit scores and potential long-term costs; however, they can provide a path toward debt relief.

If you’re facing a disabling injury that burdens you financially, don’t lose hope. Believe in your ability to overcome adversity. More importantly, engage a reputable debt professional for practical solutions. You’ll overcome!