Why are people opting for debt consolidation loans?

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Loans are a great way to pay for different expenses and not burn a hole in the lifelong earned savings. Some of the reasons to avail of a loan include wedding expenses, education or multiple loans to pay for every one of these extravagant expenses. Although financial stability can be achieved by taking multiple loans, it is inefficient and time-consuming to keep track of numerous EMI payments and can negatively affect your financial future by creating a potential debt trap.

The logical solution appears as a debt consolidation loan. It is a type of personal loan, taken to pay off previously taken unsecured loans or multiple liabilities. A debt consolidating loan is offered by creditors as part of a long-term payment plan to people who face complexities in managing and paying their current outstanding debts.

Why opt for debt consolidation loans?

Debt consolidation loans eliminate the complexity of paying various debts by transferring it all into one single amount, to be paid on a monthly basis. People prefer this option over any other owing to the following benefits:

  • Single EMI payment: Keeping track of various EMI payments of different loans is a time-consuming and inconvenient. Even though one can have the required amount in the bank account, he/she may miss the last date of payment, which can negatively affect the credit score. A debt consolidation loan allows a person to repay every active loan altogether with a single EMI to be paid every month.
  • Lower Interest rate: Owing to previously acquired loans and their timely EMI payments, a person is delivered with a financial blueprint and credibility. In most cases, a debt consolidation loan comes with a lower interest rate than the current loans available from other financial institutions. In such a scenario, taking a debt consolidation loan to pay off the high-interest rate loans can prove to be a financially smart option to save money and clear liabilities.
  • Easy to avail: A debt consolidation loan from a P2P platform or a good financial institution allows a borrower to avail of a loan without a credit score. The entire process is user-friendly and quick. The amount for a debt consolidation loan, when taken from a P2P platform is credited into the borrower’s bank account within a week. Furthermore, a debt consolidation loan can release pledged assets by paying off debts through a new loan which requires no collateral on the borrower’s part.

Tapping into the increasing interest of borrowers for a single loan to achieve financial stability, RupeeCircle provides flexible debt consolidation loans that require no collateral or credit score. RupeeCircle’s debt consolidation loan comes with one of the lowest interest rates, allowing borrowers to do away with high-value loans and pledged assets. Borrowers can avail of a loan up to Rs 5 lacs from the platform with interest rates as low as 12%.

Visit us at RupeeCircle or call us at 1800 123 993 333 (Toll-Free) to simplify your financial liabilities and avail a one for all debt consolidation loans.

Sumeet is the lead content writer at RupeeCircle, where he articulates with innovative storytelling. When he's not writing or editing content for RupeeCircle's blog, he's a stand up comedian and a full time entertainer. Connect with him on Facebook and Instagram!

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