As you don't have
to pay up front when you use a credit card, it is easy to overspend. This can
result in a hefty monthly bill, which you may not be able to pay off in full.
However, your unpaid dues come with a high interest, and this causes you to
struggle during repayment.
You may use another credit card to pay off the
interest, and this makes you accumulate further debt that your income is unable
to free you from.
The best way to
take control of your credit card debt is to consolidate it with a Debt Consolidation Loan from lenders. Using aPersonal
Loan to consolidate your high-interest debt is one of the best options for you
as you get a collateral-free loan of up to Rs.25 lakh at an affordable rate of
interest.
Using the Personal Loan
gives you a single EMI to repay for all your consolidated debt instead of
remembering multiple deadlines and makes your overall interest obligation
lower. You can easily apply for a Personal Loan
by checking the Personal Loan eligibility
criteria and submitting an online application with minimal documents.
Here is why it is
better to consolidate your
credit card dues with a single Personal Loan.
●
It reduces your EMI
When you consolidate all your credit card
dues using a Personal Loan, you will be able to bring down your total credit
obligation in an instant. Getting the Personal Loan on a low interest rate will also help you further reduce
your interest burden. This is because credit card dues come accompanied with
heavier interest compared to loan rates. So, not only will be able to repay all
your dues, but you will only have one budget-friendly EMI to pay. The quick
approval on Personal Loan lets you access handy cash within no time.
Additionally, you can repay the loan easily choosing a tenor of 12 to 60 months
according to your income.
●
It helps you manage your debt
more easily
Multiple
credit card dues take up more time to manage and strain your income too.On one
hand, you have dedicatedly put aside a good fraction of your income to repay
them. On the other hand, you will have to meet all the EMI deadlines to avoid
defaults. Thus, one consolidation frees you of this unnecessary management
struggle. When you are trying to declutter your finances, choose an easy and
affordable Personal Loan to sort this out in a hassle-free way.
Further, the Personal Loan offers you an
advantage in the form of a Flexi Loan facility. This facility
allows you to access funds from your sanction based on your financial needs.
So, you can withdraw parts of your sanction to repay credit cards and pay
interest only the amount you utilise. This will let you keep aside a sufficient
part of your sanction for future use. Here, you can also choose to pay
interest-only EMIs and repay the principal at the end of the tenor whenever you
have surplus funds in hand. This lets you save more money alongside the
consolidation.
●
It increases your credit score
If you utilise the maximum limit on your
credit cards, your credit utilisation ratio will increase. This will have a
negative impact on your credit score. So, when you avail a Personal Loan to
repay credit dues, you will immediately lower your ratio. This boosts your
credit score.
Before applying
for a Personal Loan for debt consolidation, you can use the EMI
calculator to calculate your ideal EMI in advance and
manage your funds better. While you can save money by consolidating your credit
card debt, be careful to choose the right Personal Loan that comes without hidden charges to keep your borrowing
experience as affordable as possible.
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