A debt consolidation loan is one large loan that covers several existing loans you may have. By consolidating all of your loans, you will only pay one monthly payment. If you’re self-employed, you may be wondering if a debt consolidation loan is right for you. Continue reading to find out more.
What is a debt consolidation loan?
Put simply, a debt consolidation loan simplifies and streamlines all of your other loans into one repayment. Some people may assume that if they are in debt, they will be unable to take out another loan. However, debt consolidation loans are designed to help those struggling with debt. You may have many monthly repayments for a variety of different loans, including overdrafts and credit cards. Instead of making lots of small and hard to manage monthly payments, you can control your cash flow by taking out a debt consolidation loan.
For the self-employed
Debt consolidation loans can work for a number of people, including the self-employed. When running a business, you may find you have mounting loans and expenses to pay each month, which adds stress to your daily life. With a debt consolidation loan, you can clearly see how much you have leftover each month to reinvest into your business, which simplifies your finances. If you can satisfy the lender’s requirements, there is no reason why you can’t take out a debt consolidation loan as a self-employed person.
There are many reasons to take out a debt consolidation loan. One benefit is that you can switch higher interest rate loans into one loan which is a lower rate. These lower interest rates will save you money in the long run. Another advantage is that having an easy to manage payment can help protect your credit score, as it reduces the chances of you missing a repayment. A single payment can help you to budget, as you can clearly see how much you have leftover each month, as well as taking the confusion out of paying your loans.
If you’re self-employed and in need of financial help, Debt Consolidation Loans can help. We are experts who can put you back in control with manageable outgoings. For more information, contact us today.
For more information on debt consolidation loans UK, don’t hesitate to get in touch.