All of us have suffered from the sudden hike in prices, irrespective of whether that is increased tariffs on utility bills or price hikes in groceries. In such situations, purchasing a housing property or vehicle requires financial support. Or imagine succumbing to any accident or sickness and having to pay hefty medical expenses.
In such cases, opting for a loan remains the only choice. However, when two more such incidents occur, and you have taken multiple loans, it becomes chaotic to manage. Hence, in my experience, debt consolidation would be the best option.
You need to apply for a new loan in order to dissolve your prior debts and liabilities. It will help streamline the tracking process for your loan details. Sounds convenient? Check out the few effective debt consolidation options, especially for those who are self-employed.
What Are The Four Debt Consolidation Options for Self-Employed Individuals?
There are multiple options for consolidating your debts. These are my top four suggestions to proceed with if you are agreeing to bring down all your debts to one source. Scroll down for further information.
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Apply For A Loan
In my experience, I would suggest applying for a debt consolidation loan, which is certainly the best option. They offer competitive interest rates, wider loan amount brackets and convenient repayment options.
You may also enjoy a few other benefits if you choose a competent Debt Consolidation Company. This is especially beneficial for self-employed individuals. This option offers a lot of convenience, as you only have to pay one creditor. Also, you can opt for a loan from banks or other registered financial organisations.
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Transfer To Balance Transfer Credit Card
In this case, you can choose to transfer your loan amount to your balance transfer credit card. This card offers low or, in some cases, zero interest in comparison to the other credit cards for the introductory period. Hence, you can transfer the outstanding amounts from your credit cards to the balance transfer credit card.
However, you must make sure that you pay the amount before the APR period ends, or else you will incur more losses. I would suggest that you choose a card with a higher credit limit to contain all your debts. Additionally, make sure that the APR percentage rate is lower for maximum convenience.
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Peer-To-Peer Loan
Another option I would suggest is P2P lending. This recommendation is beneficial for self-employed people. The major reason is simply that some organisations may offer loans even without credit scores.
However, maintaining a decent credit history will always accelerate the loan approval process. Moreover, you can also enjoy lower interest rates on your loan. This is simply like a personal loan. In fact, they are unsecured loans; hence, you do not have to worry about pledging any kind of collateral for the loan.
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Opting For Home Equity
My last suggestion is to apply for home equity loans. However, this is only applicable to those of you who are homeowners with enough equity. You can borrow some of the home equity to pay off your debts.
You can borrow home equity in two ways: apply for home equity loans, or you also use the home equity credit line. In the latter, you can access the amount as per your requirement and then replenish the used amount at your convenience. For self-employed homeowners, this is, in my opinion, the most convenient option.
Wrapping Up
Debt consolidation is becoming more popular with time; hence, you must learn about them beforehand. Prior knowledge will help you to function effectively in times of need. Moreover, I would like to add that while opting for the consolidation loan, confirm the authenticity of the Debt Consolidation Company before proceeding any further.
