• Apply Now

Money in bank in 24 hours

Apply Now

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.

Check your cibil score for free
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.

5 things you can get on EMIs for your wedding

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.

The content of this document is meant merely for information purposes. The personal loan features mentioned in this article are subject to updation, completion, revision, verification and the same may change materially based on policy revisions. For more details, please visit our Personal Loan terms and conditions page here.

Pre-approved offer

Please enter fullname
Please enter 10 digit mobile number
Please enter city

I authorize Bajaj Finserv representative to call /SMS towards this application and other products/services. This consent overrides my registration for DNC/NDNC. T&C

How would you rate this article

 Please let us know why?

What did you dislike?

What did you dislike?

What did you like?

What did you like?

What did you like?

Next up

Product guidance

Why should you use a Bajaj Finserv Personal Loan to finance your next vacation

This is a 2-minute read.

40 people have shared this article.