Debt can feel like a heavy burden, as it weighs you down and prevents you from achieving your financial goals. However, with the right strategy, you can take control of your debt and work towards achieving financial freedom.
Have you heard of the term “debt consolidation”? Well, if you have not, keep reading, as this one term will help you reduce your debts effectively and efficiently. The article will provide you with a 5-step strategy with which you can use debt consolidation to reduce your ongoing debt.
Understanding Consolidation with Personal Loans
Before understanding debt consolidation, you must first know what a personal loan is. This loan is offered by loan apps that lend money to borrowers quickly without any collateral. The advantage of this particular loan is that it can be used for various purposes, including debt consolidation.
Debt consolidation through personal loans means you have to take out a new loan with an affordable interest rate to pay off your multiple existing debts. This can include credit card balances, medical bills, or other unpaid loans. This way, instead of making multiple payments to various creditors each month, you consolidate all your debts into one loan with a single monthly payment. Thus, you can enjoy the benefit of not missing any of your payments and getting a loan with an affordable interest rate, while ultimately helping you save more.
How to Consolidate Debts with Personal Loans in 5 Easy Steps?
Consolidating debts through personal loans can be a straightforward process when approached correctly. Here are five simple steps that will allow you to consolidate your ongoing debt with a personal loan:
Step 1: Assess Your Debts
Your initial step should be to assess all your debts by collecting information on the outstanding balances, interest rates, and minimum monthly payments. Making a list of each debt will give you a clear picture of your total debt burden and help you understand how much you need to consolidate.
Step 2: Research Personal Loan Options
Research the personal loan options available through loan apps to consolidate your debts. Look for lenders that offer competitive interest rates, transparent terms, and quick approval processes so you can manage your debts as soon as possible. Also, do not forget to consider customer reviews and reputation when choosing the ideal loan app for your needs.
Step 3: Apply for a Personal Loan
Once you've selected a lender that meets your requirements, you can just loan apply through their loan app to consolidate your debts. They will ask for the necessary documentation, like proof of income and identification, to complete the application process.
Step 4: Consolidate Your Debts
Use the money from the loan to pay off your current debts and consolidate them into a single personal loan. This makes the debt payments significantly simpler and can also lower your overall interest rate, saving you money in the long run. Also, keep track of your new loan terms, including the interest rate and repayment schedule.
Step 5: Create a Repayment Plan
Developing a repayment plan to pay off your consolidated debt is very crucial. So, consider factors such as your budget, income, and other financial obligations when creating your plan. Try to make consistent payments towards your loan to reduce your debt and slowly improve your overall financial situation.
Way Forward
This simple 5-step debt reduction strategy can help you manage your debts smartly and improve your financial situation. Debt consolidation is a smart way to manage multiple debts wisely, and the best part is that a personal loan can help you do this quickly and effectively.
But which loan app should you choose if you're looking for a reliable lender to help you consolidate your debts and reduce your financial burden? Consider exploring True Balance, a well-reputed Indian loan app. With its user-friendly interface, transparent terms, and quick loan approval processes, you can loan apply within minutes.
So, if you want a trusted solution for your debt consolidation needs, download True Balance today!
Read Also: Investing in Your Child’s Future: Using Loan Apps for the Best Course
FlexSalary offers the quickest personal loans available in India.
You can apply for a loan of anywhere between Rs.
Vivify India Finance Private Limited, a non-banking finance company (NBFC) registered with the Reserve Bank of India, is offering FlexSalary as a loan product (RBI).
You get the benefit of a loan management artificial intelligence system with FlexSalary.
It aids in determining an individual’s credit score and eligibility for a personal loan under FlexSalary’s standards.
A personal loan is an unsecured (without collateral) loan that can be used by the borrower for any purpose.
These loans are the most popular kind of loans in the market, as Applying for Personal Loans and their eligibility criteria are very easy-going for borrowers.
Read on to find out about How to apply personal loan Online in India.When can you apply for a personal loan?
Being a multipurpose loan, the borrower can use the amount on:For Home renovation:The borrower can use personal loans to fund the repair and renovation of their residential or even non-residential properties.
They might be limited; meanwhile personal loans can help mitigate the further need for capital while pursuing higher education.Wedding:Indian weddings are massive financial burdens; however, it is the dream of many to have an elaborate wedding celebration.
Personal loans can help mitigate some of the burdens of Indian Wedding finances.Medical Emergencies:While special medical loans exist personal loans are much quicker to obtain in times of emergencies with minimum documents.For Traveling:With the value of the Indian Rupee declining, a trip to foreign locations has become more expensive.
