Are you burdened with debts? Have you been paying multiple EMIs at high-interest rates? Well, there’s a solution to get rid of the burden and moderate your debts. You can take a single personal loan and consolidate all your other existing debts.
First, understand what debt consolidation is. It simply means getting rid of multiple loans by consolidating it with one single new loan with a lower interest rate. This way the borrower has to make one single EMI payment instead of multiple payments in one month.
Things to Keep in Mind While Choosing to Consolidate Multiple Debts
- Check your current debt obligations
- Your total monthly EMI
- Your current tenure
- Your current interest rates
If your new loan offers you a better rate of interest and longer tenure, then apply for a consolidation loan. Pay off all your existing debts with it.
For example, if you have a huge credit card bill and you’ve been paying EMIs that are hurting your pocket, why not opt for a personal loan with a lower interest rate and longer tenure. Personal loans help you steer clear of lender harassments.
Benefits of Taking a Personal Loan for Debt Consolidation
- Rate of interest is comparatively low
- No collateral needed
- No security risk
- Option to pay off your principal with part payments
- Flexible loan tenure
- Simple monthly EMIs
A personal loan lets you close multiple loans in one shot. Be it your credit card debts, mortgage, or collection agency debt, you can close it without having to fear the loss of your property or other existing investments. Many lenders like Money View, Bajaj Finserv give you debt consolidation loans specifically with lower interest and a longer tenure. You’ll be glad to know that a debt consolidation personal loan is best for moderate debt amounts. Visit the website to know easy and quick ways of repaying your debts. It allows you to clear all the other loans you carry. You can plan your monthly finances more efficiently.
If you pay your EMIs on time, you can maintain a good CIBIL score. Why is this important you ask? Every lender in today’s time checks for your CIBIL score before moving your personal loan application forward. CIBIL score is equivalent to a trust score in the financial world. Higher your CIBIL score, better the chances of you getting a personal loan at a reasonable interest rate. When you have a high CIBIL score, lenders are convinced that you’ve been paying your EMIs on time. And for any lender, repayment is the top priority. So, try your best to first understand your current financial status. Make a note of your existing expenses, and check if you’ll be able to pay the EMI on time. Choose a longer tenure or a smaller EMI if you cannot repay it quickly. Personal loans for debt consolidation come with long tenures, so you feel comfortable and less stressed with the EMI payments.
You can always approach financial experts to make a better, informed decision. You don’t have to lose out on your house, car, or other collateral.
