Managing Debt When You’re Self-Employed

When you’re self-employed, you benefit from all sorts of perks. You have complete reign over your business’ progression and can choose your area of specialism. You choose who you work for. You choose when you work. You choose when you have time off. But you also take on the huge responsibility of making all financial decisions to do with your work. If you don’t manage things correctly straight off the bat, you may find yourself in debt after taking out loans or credit cards to tide yourself over. The good news is that there are resolutions to any form of debt you may have accrued. Here are just a couple of different things you can do to start taking control of your debt and making your way back into a financially comfortable position again!


Determine Whether You Need to Go Bankrupt

The first step you need to take is to determine how much debt you’re in. Is this a figure that you could ever possibly clear? Some people find themselves in a position where they can work as hard as they can but still won’t be able to get rid of the sheer amount of debt they’re in. If you are in this situation, you might want to consider going bankrupt.  Going bankrupt will clear all of your debts, meaning that you won’t have to pay them back any more. A bankruptcy law firm will help you to do this. Remember that this is a huge decision to make. There are repercussions. You won’t be able to take out credit for a set amount of time and you may have to sacrifice financial basics as simple as having a bank account. So, seek advice and determine whether this really is the right option for you!

Using Balance Transfers

If you have used credit cards for your small business, the money that you owe is likely to have a relatively high interest rate attached. You don’t want to have to pay loads of interest rather than just being able to pay money back. It can be hard to chip away at debt when you’re constantly paying interest. The good news is that there’s a solution – take a look for the offer of a balance transfer with a zero percent interest rate attached. Of course, this interest rate won’t last forever. But it could give you a year or two to clear your debt quickly without forking out lots of interest. So, find a transfer and clear your debt as quickly as possible!

These are just a few steps you can take to take control of your debt when you’re freelancing. Of course, this can be a difficult situation to find yourself in, but there are ways to make your way out of the red and into the black! Hopefully, the information provided above will help to get you started out on the right track!

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