Many building service contractors (BSCs) are unsure how debt can impact their businesses and personal lives. Because of this, Tornado Industries highlights five myths about debt BSCs should be aware of.*
 
Myth 1: If I marry, my spouse becomes responsible for my business debts.
Fact: Typically neither spouse is responsible for any debts incurred by the other before the marriage.
 
Myth 2: My spouse is responsible for my business' taxes.
Fact: Did your spouse sign your business' tax return? If not, he or she is likely not responsible for your business' tax obligations. And, even if a spouse does sign a joint tax return, under certain conditions he or she may still be protected by filing Form 8857-the Innocent Spouse Relief Program-with the Internal Revenue Service.
 
Myth 3: It is a good idea to take advantage of interest-free credit cards and loans.
Fact: Always borrow when necessary, carefully, and conservatively. The "catch" with many of these interest-free cards and loans is they must be paid within a specific timeframe. If not, interest charges may be applied from the start of the loan and often at exceptionally high rates of interest.
 
Myth 4: To have a high credit score, pay all your debts on time.
Fact: This is partially true. Your credit score may be more impacted more if you miss payments than if you make all payments on time. Furthermore, your credit score is based on a variety of factors and not just how punctual you are paying your bills.
 
Myth 5: A late payment will damage my credit score.
Fact: While a late payment may result in interest charges and penalties, it may not impact your credit score if payment is made within 30 days and it is an isolated incident.
 
 
* This information is based on credible sources.  However, BSCs are advised to consult with an attorney or certified public accountant on these and other debt-related issues and questions.