Sole Trader Debts | Debt Consolidation | Loan
What is Debt Consolidation?
Debt Consolidation is a method used by many self employed people/sole traders to consolidate their debts into one lower affordable payment, therefore making your monthly outgoings more manageable. Debt Consolidation is normally successful if you have some sort of asset to put against the loan, such as your home or a business property, also referrred to as a secured loan. This enables the provider to have some sort of security over the debt being paid.
Benefits of Debt Consolidation for a Sole Trader
- A Debt Consolidation Loan can be a good help if you or your business are struggling with many debts that have high and/or varying interest rates.
- You can get a lower rate of interest spread out over a longer period of time.
- You will have one lower single monthly repayment.
- There will be less chaos for you and your business due to having less monthly bills and only having one in its place.
- Your monthly repayments will be lower.
Disadvantages of Debt Consolidation
- Bear in mind that you are not becoming debt free. Your total debts will still be there, just in a more manageable form.
- Interest on debt consolidation loans can be variable throughout and you should look into this when you are investigating your loan.
- You will also likely have a longer repayment term for the loan so bear this in mind.
- If your loan is secured against an asset and you do not keep up repayments, the asset may be at risk ie. your business or property.
Further information on Debt Consolidation
To discuss the matter of Debt Consolidation further, please contact us at Business Debt Advice where our team of friendly debt Advisors will be more than happy to help.
Call 0808 186 9850 for debt advice. |
