There is plenty of trouble in today’s economy, and few industries have been spared hardship. Turnaround opportunities abound for those who have the knowledge and fortitude to go through the process. The rewards can be plentiful and the failures catastrophic.

The process of turning around a troubled entity is complex and made more difficult by the multiple constituencies involved, all having different agendas. Lenders want their invested capital returned, preferably with interest. Creditors want to get paid for goods and services. Original investors want and hope for recovery of their capital, while distressed investors want to buy in at 20 cents on the dollar and then turn a profit, some by trading the credit and others by turning the business positive and then selling. Owners want to avoid guarantees and recoup some of their equity. Employees want to retain their jobs and benefits. Directors want to avoid risk and litigation. Other stakeholders want their interests protected. These varied desires often can be at odds with one another and hamper the turnaround effort.

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Among the many New Year resolutions that will fail to make it as far as next year will be the one about losing weight. A useful back-up, therefore, maybe to make one that addresses the issue of shedding the excess pounds the credit cards seem to have acquired.

Budgeting is an ideal way to keep household finances under control and ensure that loan and credit card payments are made as per the agreed schedule. The credit balances reduce, until one day the debts are repaid and you are better off each month. That’s the plan.

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