A beginner’s guide to debt consolidation
Debt consolidation is essentially a way to integrate all your different loans into one single debt. This allows you to manage your mortgage better and also prevents unforeseen financial setbacks. Debt consolidation loans are becoming popular with each passing day, but there’s much to be learned about these apparent lifesavers before you take the plunge.
Bajaj Finserv offers debt consolidation loans in the form of Personal Loans with instant online approval for up to 25 lacs. You can consolidate all your debts into a personal loan and gradually pay off the accumulated debt. A comprehensive understanding of the way debt consolidation works is essential to successfully escape the debt trap. Read on to discover the intricacies involved in the handling of debt consolidation loan and how to make the process easier.
Grasping the Basics
Before moving on to discussing debt consolidation loan solutions, let’s understand the fundamentals of debt consolidation. Managing multiple loans can be hard, especially when you have procured the mortgages from different banks with varying interest rates. To make the repayment process easier, you can apply for a second mortgage to finance the debt payment. Bajaj Finserv provides you with that second mortgage in the form of a Personal Loan and offers benefits like online account access and instant online approval.
How does it Work?
Another important aspect in understanding debt consolidation is how exactly it makes the multiple mortgage repayment easier. The biggest advantage on offer is that most people find it easier to repay a single loan as compared to handling different bills every month. Another benefit is that by grouping all your loans into one large loan, you can often obtain a lower monthly payment or lower interest rate. For instance suppose you have three debts with interest rates of 12%, 15%, and 18% respectively. If you decide to go for debt consolidation, you can bring the interest rate down to 10-15%, which could save you a lot of money.
Understanding the Market
Before you go for debt consolidation, it is advisable to keep tabs on the latest happenings in the financial market. Stay updated about personal loan interest rates since they seriously impact your debt consolidation plan. Gaining these sorts of insights could really help you get a better idea about how to go about the repayment process.
Why Go for a Personal Loan?
Personal loans are usually considered suitable for debt consolidation owing to the fact that they are easy to attain, if you have a favourable credit score. Also the interest rates for personal loans also depend heavily on your credit score, so keep that in mind before you apply for one. Bajaj Finserv offers Personal Loans with part prepayment facility and pre-approved offers. Apply online for personal loans here.