When you have many accounts such as credit cards, home loans, and more active, it can drown you in hefty EMIs.
You may also have to deal with mounting interest rates. You may look for easy ways to pay off all debts and may even use all your savings to do that. Nonetheless, there is a better option than you may go for!
Many leading financial companies offer personal loans at an attractive rate of interest that you may use for the purpose of debt consolidation. Yes, you can use the loan amount to repay all your existing loans to pay only one EMI and interest in a month.
If you are unsure how to use the debt consolidation loan, then you should go through this article to know more. Read on!
1) Enjoy considerably lower debt consolidation loan interest rates
Personal debt consolidation loan comes with a reasonable rate of interest than a majority of credit card options.
Hence, utilizing a personal loan amount for consolidating your debt can also lower the amount that you pay as interest. You can opt for a debt consolidation loan and pay just one loan payment instead of 4-5.
2) Make a single payment each month
One of the significant debt consolidation loan benefits is that you only need to make only one payment. As a result, you don’t need to keep track of multiple debt accounts, and paying one EMI in a month could help you keep track of all bill payments.
3) Plan your monthly payment with quicker debt pay-off
Debt consolidation loan also lets you pay off your loan in a short span with only one payment per month along with a fixed interest rate. If you decide to consolidate debts by using a credit card, then you won’t be out of the debt as paying minimum balance won’t help.
Personal debt consolidation loan has 1-5 years as the tenor, which means you can easily plan your loan pay-out and monthly EMIs. Once you pay as agreed, your entire consolidated credit would be paid in full by month-end.
4) Raise your Flexi loan limit
If you are availing a personal debt consolidation loan and able to repay it within a time frame, then you may enjoy perks to boost your loan limits. If you can handle them properly, nothing can beat personal loans as an effective model to improve your loan limit later.
Many lenders also allow Flexi loan benefits, which means you can pay only interest as the monthly payment on the utilized amount and nothing extra. It also means that you can adjust the remaining amount after the end of the loan tenor.
5) Get money in your bank in 24 hours
Another debt consolidation loan benefit is that lenders understand that you are availing it for urgent proposes. Hence, they don’t take time in approving applications.
Thus, you can enjoy instant approvals along with money in your bank account in only 24 hours. It can help you utilize the loan amount for the consolidation of your debts super fast.
6) Avail of a higher loan amount to suit your needs
Most of the known banks and non-banking finance companies (NBFCs) provide you with a higher loan amount to suit your needs. Based on your CIBIL Score and other eligibility factors, you can get up to Rs.25 lakh as the debt consolidation loan.
You can also utilize loan calculators to know how much of an amount you will get. Loan calculators are available on a lender’s website that you can use free of cost.
No matter what purpose you are availing of the debt consolidation loan, it can easily help you reach your goals. It can help you eliminate debts quickly and bring you back on the right track.