Managing your debts and EMIs on the different loans you have taken can get overwhelming sometimes. It’s crucial that you manage your debts carefully in a planned way so that you have enough money left to manage your other monthly expenses such as food, rent, utilities etc. Taking a debt consolidation loan in the form of a quick personal loan can help you manage your debts efficiently by combining your multiple existing debts into one single debt.
These unsecured loans can be a big relief for you and help you manage your expenses and debts in a more organised way. But it’s important that you ask yourself these seven questions before applying for a debt-consolidation loan:
- What’s your credit score? Checking your credit score is important before you apply for a debt- consolidation loan to know your personal loan eligibility and personal loan interest rates, a higher credit score will help you get a loan for a higher sum at a lower rate of interest.
- Is your current credit report accurate? This step can improve your credit score by helping you find any errors in your credit report and any wrongful deductions, thus helping you get a quick personal loan easily without any hassle.
- What are your current debts & the EMIs you’re paying? One of the most important questions you need to ask yourself before applying for a personal loan. Listing out all your current debts, the monthly EMIs on the debts you hold, and their interest rates will help you figure out whether taking a debt-consolidation loan can actually be useful for you.
- What’s the interest you’re paying on a loan for debt-consolidation? Once you’ve all your loan account information in front of you and a basic idea of the loan options available, you can use a debt-consolidation calculator to monthly instalments and the loan tenure. Check the duration of the personal loan for debt consolidation, the monthly instalments along with the interest rates and if you’re paying less in interest than you’re paying now, you can choose to opt for a loan for debt-consolidation.
- What is your loan option? Once you’ve figured your credit report and the need for a debt-consolidation loan, you need to analyse the different institutions such as banks, financial institutions, and credit unions from where you take the loan. Financial institutions like Bajaj Finserv offer quick personal loans for debt-consolidations for amounts up to Rs.25 lakhs at attractive rates of interest.
- Who is your preferred lender? You need to choose the list of lenders where you’re going to apply for a loan for debt-consolidation. Make sure not to apply with a lot of lenders as your credit score may fall if your loan application gets rejected. Choose your lenders based on their respective eligibility criteria and the loan terms that suit your interest the best.
- Have you closed your existing loans or set-up automatic monthly payments? Once your loan for debt-consolidation has been approved make sure you close your existing debts or set up autopay for those loans. This can be done by the lender from whom you’ve taken the debt consolidation loan depositing the entire debt amount in your account or them paying the loan amount directly by themselves.
A very big reason you should opt for a debt-consolidation loan is that it helps you save more money while you work on decreasing your debt amount, along with allowing you to enjoy low interest rates, merging multiple payments into one, improving your credit score, and decreasing your financial stress.
Bajaj Finserv offers pre-approved offers on a variety of its products, including personal loans and credit cards. You can check the offer set aside for you by submitting your name and contact details.
