Debt in business is sometimes inevitable, especially if you don’t have a reliable cash flow. It can be overwhelming to clear your debts, majorly if they push you to the corner when making monthly payments. Your best shot to effortlessly pay off whatever you owe is through debt consolidation. This technique allows you to combine all your debts into one, lowering monthly payments and interest rates. Nevertheless, you must understand the different ways to go through this process, information that’s readily available in this article.
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1. Consider a Debt Consolidation Loan
Debt consolidation loans have helped many entrepreneurs to clear their debts and keep their business operations afloat. The good thing is that the number of lenders willing to offer this funding type has skyrocketed over the last few years, as confirmed by Symple Lending.
However, you must comply with the requirements for getting this personal loan, primarily by ensuring your credit score is in its best shape. A debt consolidation loan has several benefits, but the top ones are lowering your monthly payments and the loan’s interest rate.
2. Tap into Your Retirement Account
You must think about the future and what your retirement years will be like by creating and funding your retirement account. Nevertheless, there comes a time when the money you vest in such an account can save your business by helping you to pay off your debts.
The best thing about this option is that you don’t need to check your credit rating, and your payments to facilitate the loan go back into your retirement account. You can talk to a Symple Lending expert to get a clearer image of how to go about this procedure.
3. Think of Balance Transfer Credit Cards
Acquiring a balance transfer credit card is an excellent debt consolidation option. These cards have a 0% introductory annual percentage rate running for a specific set timeframe, mostly between nine and 21 months. This method allows you to transfer your debts to a new card and enjoy 0% interest during the introductory phase.
A balance transfer credit card lowers the interest rate, saving you substantial amounts, ranging from hundreds to thousands of dollars. Unfortunately, this debt consolidation option has a downside. You can only transfer debts that don’t surpass the new card’s credit limit.
4. Debt Settlement
Creditors and lenders are humans, too, meaning you can negotiate with them to pay less than you owe. Nevertheless, debt settlement requires top-notch negotiation skills, considering that you’re convincing your creditor to consider receiving less money from you. This is why many business people consider the services of a law firm or a debt settlement organization to handle the process on their behalf. Debt settlement will save you a lot of money, but its downside is that it can harm your credit score.
Paying off your business debts feels like lifting a huge load off your shoulders and offers peace of mind to remain focused on your operations. However, you must be willing to acquire all the help you require to clear whatever amounts you owe your creditors. The above four points explain the best ways to achieve a debt-free life.
