If you have been self-employed for a long time, you may have taken out a loan or two with bad terms. If you now want to redeem these loans quickly, debt restructuring for the self-employed can help.
What happens when a debt is rescheduled?
For this purpose, a new loan with better conditions and lower interest rates is applied for and taken out from a bank in exactly the loan amounts to be repaid. With this new loan amount, you completely replace the other loans and only pay the monthly installments for this new debt rescheduling loan. An overdraft facility that is constantly being used can also be repaid with debt restructuring for the self-employed. Because especially with the constant overdraft of the business account one has to pay more fees and interest than with an installment loan.
So if the business account is overdrawn for more than three months, you should consider rescheduling and taking out a loan as a self-employed person. Despite everything, banks and credit institutions also need security when granting a loan to the self-employed. Therefore, it makes sense to have insurance, a well-running company with valuables, your own savings reserves or a high monthly income.
Too many creditors and bills burden the work
Even if you are currently not able to pay as a self-employed person and many creditors are waiting for your money, you should consider rescheduling for the self-employed. Many banks and credit institutions have extra loans to offer in the area of self-employment. With such a debt rescheduling, all outstanding bills add up and take out a loan for this amount.
So all creditors can be satisfied and you only pay the monthly installments to the bank or credit institution. This makes it easy to avert being caught in the debt trap as a self-employed person if the creditors are no longer willing to wait for their money and may thus initiate the judicial procedure and thereby get bad Credit Bureau information.
Always separate private and business expenses
Before taking out a debt rescheduling loan, you should definitely be clear whether it is a loan for private expenses or debt restructuring for the self-employed and thus for business expenses. Many direct banks offer cheap loans especially for the self-employed, you can find out more about them on the Internet and at the same time compare the different banks and their conditions. So you can get a much cheaper loan for business expenses than for private expenses.