By PETER LOFTUS
“Ten years ago, Jason Olim and his twin brother, Matthew, took a gamble and racked up $64,000 in credit-card debt to expand their business: an online music retailer called CDnow. The Olims paid off the debt quickly, took the company public, and later sold it to Bertelsmann AG, the German media giant, for $117 million.
Sam and Ren?e Beckley also ran up thousands of dollars in credit-card debt to start their own business, a recording studio in Aurora, Ill. But they aren’t quite millionaires yet. Although their business is growing, they’re so mired in bills that they signed on with a debt-consolidation firm earlier this year. Between the debt and a hefty hospital bill, they expect it will take four years to pay off the $40,000 they owe.”
– Using credit cards is an option but you had better be prepared to manage it closely. For example, it may be a good idea to keep your day job in the early days of your business so that your credit card debt will be paid off monthly. Sam and Renee found this out the hard way. Luckily, they are being proactive and, from the looks of it, this blunder will not put them out of business. -ed.