I wish there was more information in this report that showed those who did not have any credit card debt. Looking at how the average debt balance more than tripled when you took them out suggests that there are quite a few, and that their inclusion in other stats are probably skewing those numbers.

It's quite telling when you look at the debt to income ratio in the study. While the successful companies ended up with a higher total credit card debt at the end of 2006, their debt to income ratios were less than half of the companies that failed. I can't tell how skewed these numbers are by those without credit card debt though.

The problem with debt, in general, is its certainty. It steals the freedom that small business owners have to adjust to adversity in their business. You cannot guarantee revenue projections or cash receipts, and when these fall short you are eventually forced to cut necessary revenue producing expenditures to service your debt.

There are those that recognize the risks associated with debt, but are still able to leverage it successfully. By and large though, most small business owners are just rolling the dice.

When you remove the planning and restrictions associated with traditional debt, like credit cards do, it is very much like locking a recovering alcoholic inside a bar. It's possible they don't take a drink, but the longer they are in the bar the more the odds are stacked against them.

Brad