Debt consolidation allows you to club all your smaller loans into one. Be it an outstanding bill of your credit card or a loan you take for your business, you can make repayment of all your debts into one by consolidating them. There are several ways in which you can do this without paying expensive interest rates or charges.
Here are four simple tips to help you consolidate your debts.
1. Get yourself a debt consolidation loan
Consolidation loans are unique loan offerings that are aimed at helping you clear your outstanding dues. The idea of such a loan is to replace multiple high-interest EMIs with a single instalment at a reasonable interest rate. A single loan makes repayment more manageable as you have to tackle one loan rather than repaying multiple debts with varying interest rates.
2. Switch your credit card balance to another lender
If you feel that your credit card lender is not offering a higher credit limit or has a high interest rate, you can always switch providers. A credit card balance transfer involves transferring your current credit card balance to a new lender. Even though the balance remains the same, you may be able to benefit from a higher credit limit, along with more affordable interest rates.
3. Consider a home loan balance transfer
If your home loan has a high interest rate or poor customer service, you can always choose to do a balance transfer. This means that your loan balance will shift to a new lender and that your subsequent EMIs will be made to the new lender. If you have multiple home loans, you can move these together to the new lender and club them. This is the most convenient and easy way to consolidate home loans. It also lets you get other benefits that the lender might be offering, such as a top-up loan, discounts, and more.
4. Apply for a personal loan
This is perhaps the most flexible option for when you want to merge your debts. It usually allows you to borrow a considerable loan amount of up to Rs. 25 lakh. It also gives you a flexible tenor option for smoother and more convenient repayment. Apart from this, an instant personal loan also comes with other benefits such as quick approvals, the Flexi facility and a whole lot more.
Whether you have credit card debt, an outstanding loan or any other unmanageable debt, these methods can help you consolidate them without any hassle. You can borrow a personal loan from Bajaj Finserv to instantly consolidate your debts.
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