Is it a Good Idea to Consolidate your Debt using a Personal Loan? - Loan Trivia

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Tuesday, 21 May 2019

Is it a Good Idea to Consolidate your Debt using a Personal Loan?


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Debt consolidation allows you to combine all your existing debts and liabilities into one loan so that you can clear them quickly and easily. Debt settlement will eliminate your financial burden and give you a sense of freedom. Instead of managing debts of various tenors and rates of interest, you can avail a single Personal Loan at lower interest rate and pay off all other existing debts. 

There are various reasons why you should consider consolidating all your debts, and these include boosting your credit score and saving yourself from accumulating more debt. The key to doing this is by availing an affordable Debt Consolidation Loan, which is customized for this purpose. With NBFCs, you can get finance up to Rs.25 lakh for paying off all your existing debts and the option to avail the Flexi interest-only facility.  

Take a Look at How This Personal Loan Can Be Beneficial For You to Consolidate Debt.

1. It helps improve your repayment terms

You may have taken loans for various purposes in the past. Some may have been to meet urgent monetary needs. In such cases, you may have signed up for a higher interest rate at a shorter tenor that is proving to be difficult to manage at your current income. Along with any credit card dues, you can repay these loans all at once using a suitable debt consolidation loan. Not only will this loan give you access to a high value sanction to repay all your debts, but it will come at a comfortable repayment window. You can choose from a tenor of 12 to 60 months when you choose a Personal Loan.

Additionally, NBFCs offers the Flexi Loan facility. Availing this facility will allow you a chance to withdraw amounts from your sanction multiple times based on your needs. 
Here the interest is charged only on the amount you utilise. Further you can choose to repay the loan using interest-only EMIs and get a chance to reduce your loan EMIs up to 45% to manage your finances more conveniently. 

2. It lowers your interest obligations on your debts

Dues on credit cards and high interest loans can create stress on your monthly income. This is because you will have to spend a larger fraction of what you earn to repay these loans. The higher the interest obligation, the more will be your EMI burden. So, in order to reduce your expenditure toward the interest, you will have to trim down your debts. A debt settlement will come handy in this regard. Availing a low interest rate on personal loan from lenders that will help you settle your high interest dues so that your overall interest obligation is brought down into a manageable sum. Additionally, being a collateral-free loan, this Personal Loan is risk-free too.

3. It makes debt repayment smooth and hassle-free

Having multiple loans means you will have to pay multiple EMIs and maintain various loan accounts simultaneously. This is a complicated process, and in this juggling act, you are bound to miss a few EMI deadlines. So, rather than feeling hassled, it is a good idea to consider debt consolidation. Availing a single loan will give you enough cash so that you can easily repay all or a significant amount of your existing debt. This will offer you a breather and flexibility, so that you can manage your debts better in the future. 

Now that you know why it is a good idea to consolidate your existing debts using a Personal Loan for debt consolidation.

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