4 Reasons why you should consider consolidating all your debts

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4 Reasons why you should consider consolidating all your debts

  • Highlights

  • Be it credit card bills or a personal loan, you can easily consolidate all your existing debts

  • This makes keeping track of your loan and its repayment easy

  • Here are some reasons why you choose to consolidate your debts

If you have borrowed several debts over time and are paying an excruciatingly high interest rate, you should consider debt consolidation as soon as possible. In the long run, unpaid debts can affect your ability to borrow a loan during times of need as your credit score gets affected. Using debt consolidation to pay your debts offers you various benefits.

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Here are the reasons why you should consider merging your debts:

1. Maintains your credit score:

Your credit score defines your credit worthiness, basis of which a lender decides whether you’re eligible for a credit or not. It can be difficult to keep track of multiple loans and ensure that the EMI payment happens on time. Late payments of EMI can impact your credit score negatively. Consolidating your debts can make the process of repayment easy and therefore, help in maintaining a good credit score.

2. Saves you from spending on penalties:

Every debt has a deadline. If the debt is not paid at the end of tenor, the lender has the provision to secure his/her rights.This means that lender will levy charges and penalties for defaulting. Examples of these penalties can be late repayment charges, penal interest, and more. Merging debts lets you clear the loan on time, preventing you from spend even more money on these charges.

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3. Offers benefits of the consolidation loan:

Consolidation loans are flexible and come with a range of features. These include a nominal interest rate, flexible tenor options, ability to make part-prepayments and more.Using this loan to pay your debts lets you enjoy these benefits, while making repayment lighter on your pocket.

4. Eliminates the hassle of repayment:

Repayment of debts can be a worry if you have insufficient finance. This is because different debts have varying rates of interests that take a toll on your pocket at the time of repayment. Debt consolidation eliminates this aspect of repayment and leaves you with only a single loan to pay back.

When debt consolidation has so many benefits to offer, why risk facing the consequences associated with defaulting on payments? Begin managing and repaying your debts with a collateral-free personal loan today for a hassle-free future.

DISCLAIMER:
The personal loan features mentioned in this article are subject to change, based on policy revisions. For the updated product details, please visit the Bajaj Finserv Personal Loan page here.
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