For many companies this process of choosing to get their business out of debt is very complex and there's a good reason. This isn't just deciding that you want to pay off the home mortgage or car loan. At home you can make adjustments that simply can't be forced upon employees.
For many companies they use some form or multiple forms of debt to operate that would be difficult to pay off without compromising some aspect of the business. That's what makes this decision difficult and complicated because, unless you're busting at the seams with cash, something has to be given up to accomplish this goal. Regardless, there are benefits to paying off debt like no interest, more money in the emergency fund/savings account, and more available capital for starters.
What does this look like?
- Make sure that you have a budget and that all expenses are listed (don't skip this step, it's important)
- List out and prioritize the debts (everyone has ideas about how this should be done, but smallest to largest is a good place to start)
- Create a plan with a time line and decide how much money to allocate towards the goal (this is different from the budget, it's more like a training plan with your goal being to end up debt free instead of more physically fit)
What to remember: Every company will set different goals and therefore must look at their individual scenario and decide what the company is capable of doing at this specific point in time.