Money problems are the number one cause of fights inside a marriage. Some studies show that 57% of the fights inside of a marriage are over money.

So if it’s that bad at home, what happens when a couple works together with the business finances? Well, here’s a very common question from one of our fans:

My husband and his father are running a small real estate management company. My husband hired me to start managing the finances/keeping the books for them beginning in September 2010. After working with their finances for several months now, I see that there is a substantial amount of credit card debt.

I have tried to explain to my husband that I need to apply the principle of the “debt-snowball” to this debt instead of continuing to make several minimum monthly payments that are several hundreds of dollars each. My husband argues with me about this stating that this will destroy the company’s credit rating, etc.

This is the same argument he made with me when I started FPU and told him we needed to start the debt-snowball on our personal credit card debt. In that case, he finally stopped arguing with me and let me go ahead. In terms of the small business, he is being a bit more difficult. I need to be able to show him the specific answer that the debt-snowball is applied in the same manner in a small company like theirs, as it is in personal finance. Please help!

The debt question is one that I get A LOT in EntreLeadership. So many leaders think that people can’t run a business without debt. So inevitably, during my event I will ask how many people are running their business debt free. It’s usually about 30% of the attendees. If people can’t run a business without debt, then how are so many doing it?

There are a few things to consider:

• What does God say? – The Bible is very clear on the issue of debt. DON’T DO IT! In fact, Proverbs says that if you have gone into debt, get out as quickly as you possibly can. Nowhere in the Bible will you find God blessing someone with debt. Nor do you see Him separating out personal and business. He doesn’t differentiate.

• It gives me options – Actually, I am a firm believer that debt robs you of your options. When your money is tied up paying off debt, you’re not able to take advantage of situations when they come up. On top of that, you are potentially holding God back from doing some of the things He want to do in His business. (It is His, right?) I have seen plenty of God situations that people weren’t able to capitalize on because they were bound by debt. Going into debt is saying that you know better than God on the speed of growth you should have.

• But my credit score! – There is only one thing that you need a credit score/rating for – to go into debt. That’s it. It’s there to help you get into more trouble. If you have cash, you don’t need a rating. Besides, you get MUCH better deals when you pay companies with cash. Especially in a time when so many companies are not getting their receivables collected for months on end. Go ahead and destroy the credit rating, it’s not helping you.

• Proverbs 31 – Who can find a virtuous wife? Her worth is far above rubies. Her husbands heart trusts safely in her; so he will have no lack of gain. Dude, listen to your wife! She’s onto something. Women have a sense of discernment that us guys just don’t have. And like fools, so many guys don’t listen to them when it comes to business. This is a mistake. God has wired them differently than us. Drop the pride and ask for her opinion. You’ll be surprised at how much money, time, and nose bleeds it will save you.

Question: What ways have you experienced this in your life?

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