Do you have multiple loans or debts? That could mean that you have multiple repayment schedules and EMIs of different amounts and interest rates. If you are unable to manage those loans and debts properly, it could lead to poor consequences like a bad credit score. If you think you can’t manage multiple debts, the smart thing would be to consolidate them.
5 Major Advantages of a Debt Consolidation Loan
● You Won’t Have to Pay Multiple EMIs
Multiple loans mean you need to pay multiple EMIs. Some of these EMIs may be high in value depending upon the loan’s interest rate. Moreover, different EMIs will have different deadlines which can be difficult to keep track of. You may end up missing the deadline of one EMI which will impact your credit score.
With a debt consolidation loan, you can club all your EMIs into one EMI. The monthly payments can be lower due to the longer pay off period. You just have to make one payment on the consolidated EMI.
● Your Monthly Overflow Will Reduce
The debt consolidation loan combines all the existing payments into one and extends the tenure of the loan. This brings down the amount of monthly repayment and the monthly EMI expenditure.
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