Whether it’s to buy a dream house or pay for wedding expenses, people take debts and they can quickly add up to result in high-interest rates and difficult-to-manage monthly EMIs. While debt is sometimes inevitable, it really matters how you handle them. One strategy that can make debt management far simpler is taking a Personal Loan for Debt Consolidation. It rolls all your loan EMIs into one single payment, usually with a lower interest rate than you were paying earlier.
Here, we will take a closer look at five main reasons why you must consider debt consolidation.
1. Turns All Your EMIs into One Single Payment
Debt consolidation is a great way to make your monthly payments much more manageable. If you are taking care of multiple balances every month, consolidate them into one single personal loan and lift the weight off your shoulders. Although your debt is still there and doesn’t get reduced drastically, multiple deadlines across the month are now gone and you need to focus on one debt payment only.
2. Reduced Interest Rates
Most unsecured debts often come with high-interest rates that make your monthly EMIs unnecessarily high. If you are paying multiple high-interest EMIs, consider rolling them into one and you will end up paying much less in the long run.
3. A Good Chance to Improve Credit Score
The credit score is a huge determining factor in whether you can apply for a particular lender’s personal loan for debt consolidation or not and what interest rate you will be offered. Most lenders ask for a credit score of minimum 750. You must check your credit score and see where you stand before applying for a personal loan.
One reason why you must consider debt consolidation is that you can use it as an opportunity to give a boost to your credit score. If you apply for a personal loan for debt consolidation, your credit utilization ratio will be reduced substantially and you will notice a boost in your credit score within a few months.
4. Reduced Stress
When you consolidate your EMIs into a single, easily manageable payment, you clear up the clutter of multiple payments and reduce your stress. Money matters such as debt are known for causing stress. But you can take control of your financial situation and stay on top of your personal loan EMIs with debt consolidation. It helps you to clear up your mind and achieve a better position in your finances.
5. Be Debt-Free Faster
It’s not unusual to miss loan EMIs and have their balances carried forward to months, sometimes even years, before you pay them off completely. When you have an easily manageable monthly payment, you have more chances of paying it off on time and get debt-free faster. When you apply for a personal loan for debt consolidation, a number of factors are taken into consideration, including your age, income, employment, credit score, and others. Based on that, you can choose a sensible repayment plan using a personal loan EMI calculator. For this reason, debt consolidation offers you a shorter repayment period.
So, these are a few reasons why taking a personal loan for debt consolidation is a worthwhile option you must consider. Looking for a personal loan for debt consolidation? Apply now at Clix Capital. With a loan amount of up to ₹ 25 lakhs, you can consolidate all your debts into one and pay them back in 12 to 48 months. By converting multiple monthly payments into one single EMI, you can end up boosting your credit score, paying off your debts much earlier, and save money on the interest rate.
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