Sally grew up in Bangalore, even completed her engineering in the same city. She got a job in Mumbai and spent a lot on gadgets, apparel and food.
Although she splurged, she missed her city, her friends. She had credit cards, which helped her travel to Bangalore frequently to catch up with friends.
After four years, she found herself in a financial mess. The years of paying the minimum outstanding balance hardly reduced the credit card outstandings. She suddenly found herself in a mesh.
She searched online and read about debt consolidation. A friend told her more about consolidating all her credit card outstandings by taking a personal loan. She could gradually finish all outstanding loans in a pre-defined timeline.
Sally is not alone. A credit card makes us believe that borrowing money is cheap. The reward points make it even more enticing. Moreover, the credit card is perhaps the most expensive form of loan, the interest rates on a credit card are multiple times that of other loan products. While a secured loan might cost an interest rate of 7%, the credit card, on the other hand, may charge up to 50% or even more as interest.
A personal loan becomes a handy tool to overcome such a financial situation. Debt consolidation using personal loans is an effective way to combine all the credit card outstandings and repay using single a monthly EMI.
Here are some benefits of debt consolidation:
- Work with a single lender
Multiple credit cards mean one has to handle different payment dates. Missing a payment could be a real scenario as one has to juggle the deadlines while managing work and personal life. In a situation of financial crunch, one stars getting multiple collection calls. A single lender makes life easier as one can communicate easily and manage the monthly outstandings.
- Lower interest rate
- Credit cards have the highest interest rate amongst the loan products. A debt resolution significantly reduces the interest rate. A personal loan charges only a fraction of the interest rate charged by credit cards.
- Clear outstanding
- Debt consolidation helps one to clear outstanding in a planned way. One can decide the terms of a personal loan to have visibility on the loan closure date.
- Better credit score
- Running multiple credit cards and being on the edge of default spoils the credit score. A bad credit score reduces the chances of getting a loan in future. Having a personal loan for debt consolidation improves the credit score.
LoansJagat is the best platform to start the debt consolidation journey. One can fill a simple form and get personal loan offers from over 40 leading financial institutions. LoansJagat also assists with a dedicated loan officer, who offers personal guidance to choose the best personal loan by comparing key stats like interest rate, tenure, loan amount and other terms and conditions. Further, one needs to complete the documentation post loans sanction to get the amount disbursed in their bank account.
If you are running multiple credit cards, debt consolidation using a personal loan is a saviour. Log on to LoansJagat and get the best personal loan now.
