Consolidate your multiple loans with a new Personal Loan

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Consolidate your multiple loans with a new
Personal Loan

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  ltiple-loans-with-a-new-personal-loan/

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What Is Debt Consolidation?
Debt consolidation refers to the act of availing
a new loan to pay off existing debts and
liabilities. Managing multiple debts at once can
be overwhelming and if they are of high-interest
rate, things become even more frustrating.
Consolidating all your existing loans into one
makes it much easier for the borrower, as now
he/she needs to pay EMI only for 1 loan. This way
debt consolidation helps you to manage all your
existing obligations through a single EMI.  
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ltiple-loans-with-a-new-personal-loan/
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How to consolidate your existing loans?

• You can manage your existing loans and their EMIs
  effectively by going with a new Personal Loan.
  Yes! You can indeed use an unsecured personal
  loan for debt consolidation.
• What you need to do is- 
• Calculated the outstanding amount of your
  existing loan.
• Calculate the total amount which you need to pay
  towards the EMI for your existing loans.
• Now check for the availability of debt
  consolidation loan/personal loan at lower rates.
• Apply for the loan amount which is equivalent to
  the amount you owe to other lenders.
• Once your loan is approved, prepay all your
  previous loans with the money you get from your
  new personal loan.
• This way, now you have only one EMI as all your
  previous loans are closed now. 

https//financebuddha.com/blog/consolidate-your-mu
ltiple-loans-with-a-new-personal-loan/
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How does debt consolidation loans work?
With a debt consolidation loan, you can get
financing up to ?25 lakh at lowest rates of
interest and can repay all your debts easily.
This loan can be availed from any of the lenders
who offers the personal loan. Being unsecured in
nature, you dont need to provide any collateral
or guarantee to back up your borrowing.  Generall
y what happens is Personal loan is taken to
consolidate all other consumer debts, such as a
credit card loan, a two-wheeler loan, and a
personal loan with a high-interest rate.   Thus,
multiple debts are combined into a single, larger
piece of debt, this is mostly done to reduce the
total payable EMI or to get more favorable payoff
terms. These favorable payoff terms may include a
lower interest rate, lower monthly payment, or
both. 
https//financebuddha.com/blog/consolidate-your-mu
ltiple-loans-with-a-new-personal-loan/
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Who can avail a debt consolidation loan

• Debt consolidation needs to be opted by
  individuals who are repaying multiple debts such
  as a Student loan, personal loan, credit card
  loan, two-wheeler loan etc. Several debts with
  different EMIs makes it different for the
  borrower to manage them properly. On the same
  hand paying different EMIs for many loans as a
  whole can be quite a huge amount and difficult.
  Its also possible that while managing several
  debts one might miss out on a repayment date of a
  particular loan. Thus, if you are in a situation
  like this, its better to go for debt
  consolidation and get a personal loan to repay
  your existing obligations and make your life more
  relaxed and stress-free. 
•  
• Enlisted below are features of debt consolidation
  personal loan by Finance Buddha-
• Get a personal loan for debt consolidation up to
  25 lakhs
• No Collateral required
• Lowest interest rates 
• Flexible loan tenure
• No paperwork is required!
• Completely online process. 
• Get Instant approval.

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ltiple-loans-with-a-new-personal-loan/
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Does Debt Consolidation affect Credit Score?
Managing multiple debts and their EMIs with
timely payments is quite stressful. This can also
affect your CIBIl score as there are chances that
you can miss EMI dates and thus the payments.
This can also lead to the imposition of late
payment penalty charges. However, this is not
just restricted to late fines but can also affect
your CIBIL to a great extent. Missing the due
date of payment leads to a negative entry on your
credit report, which will affect your credit
score negatively. However, there are still
changes to correct all this just by opting for a
debt consolidation loan. A debt consolidation
loan makes payments of your debt easier, as all
your loans are closed, and you are left with a
single EMI. This reduces the chances of missing
payments for multiple loans as before. And also
making regular and timely payments without
defaulting on a single EMI will show a positive
impact on your credit score.
https//financebuddha.com/blog/consolidate-your-mu
ltiple-loans-with-a-new-personal-loan/
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Advantages of Debt Consolidation Loans

• Debt consolidation is a great tool to reduce the
  financial burden for those who have multiple
  debts with high-interest rates.
• Debt consolidation loans convert your multiple
  loans into a single loan at lower rates.
• By going with a debt consolidation loan you save
  more on interest as your total payable EMI
  reduces.
• Debt consolidation loans are widely available in
  the form of personal loans. 
• With a debt consolidation loan, you can even
  become debt-free in less time. 
• A debt consolidation loan can also bring your
  CIBIL score on track as instead of several EMIs
  you will be paying only one.

https//financebuddha.com/blog/consolidate-your-mu
ltiple-loans-with-a-new-personal-loan/
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Disadvantages of Debt Consolidation Loans

• With a debt consolidation loan, you may be paying
  less on interest rate interest and thus on your
  EMI, but it is important to calculate your total
  borrowing cost, as with long tenure you may be
  paying more in long tenure.
• By consolidating your multiple loans into a new
  one, there are chances that your credit score
  gets negatively impacted. This may happen because
  credit scores favor longer-standing debts with
  more-consistent payment histories and the sudden
  closure of your several loans may impact it.

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ltiple-loans-with-a-new-personal-loan/
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Thank You
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