Best Ways to Consolidate Your Debt in a Few Steps

Consolidate Your Debt

Dealing with numerous debts at the same time can be challenging. One has to keep track of different due dates, minimum balances, late fines, and penalties. Just when you get overwhelmed with repaying multiple debts, a debt consolidation loan India can help you roll up all your existing debts and take it under a single loan to repay them off. Debt consolidation loans often come with lower rates of interest that simplify the repayment process without straining your finances.

Here Are The Ways To Consolidate Debt in a Few Steps-

Apply for a Debt Consolidation Loan

As per financial experts, a personal loan is an ideal option for debt consolidation. A personal loan is unsecured, which doesn’t require you to pledge any collateral. This way even if you default on the loan, there is no risk of losing your assets. When you take a personal loan to consolidate existing debts, you use the loan amount to pay off multiple dues and repay in one single EMI.

You must search for the lowest debt consolidation loan interest rates among the various potential lenders in the market. You can avail a Personal Loan from NBFCs like Bajaj Finserv of up to Rs. 25 Lakh with attractive interest rates and flexible repayment tenor to quickly repay all your existing debts. Furthermore, it comes with industry-free features like –

● Instant loan approval.
● Fast disbursal of the loan amount into your account within a day.
● Minimal documentation.
● Flexible tenor ranging between 24-60 months.

However, you must always use a personal loan eligibility calculator to check whether you match the debt consolidation loans eligibility.

Bajaj Finserv also brings you pre-approved offers that make procuring loans quick and hassle-free. These pre-approved offers are applicable on unsecured credits like personal loans, business loans and secured advances such as home loans among numerous other financial products. You can check out your pre-approved offer by sharing a few necessary details like your name and contact number.

Debt Management Plan

You can also enrol for a credit counselling service to receive better terms along with lesser interest rates. You’re required to take your payment to the counselling company who then distributes those funds to your lenders.  To consolidate your debt with a debt management plan – you’re required to live on a budget, constrict your expenses and pay off your debts within 3-5 years.

However, before you enrol in a debt management program – you must first qualify based on your income. If one makes sufficient money to pay off debts, he/she might not be approved. Conversely, if one makes significantly less money – your credit counsellor might recommend you a bankruptcy. But, if you do qualify based on your income and credit balances – you must accept the terms and proposals issued by your credit counselling agency.

Get a Credit Card Balance Transfer

Keeping in mind the numerous debt consolidation loan benefits, using credit card balance transfers is also an effective way to pay off your debts. It involves taking a higher interest credit card debts and transferring the balance to a lower interest rate credit card. If you possess a good credit score and history, you can opt for this facility.

Although, it is less easy to get a lower interest credit card than a debt consolidation loan – having a credit score above 750 make credit card issuers overwhelm you with attractive offers. However, bear in mind that low-interest rates are available only for a brief period. So, try to maximise your payments within this short period.

Following the ways mentioned above, you can easily consolidate your existing debts. If you want to aggressively pay off your debts since you face a hard time keeping up with your payments – a debt management plan is recommended for you. But, if you can discipline yourself in meeting your payments – a debt consolidation loan India like personal loans or a balance transfer could be a great option. Also, remember to check the personal loan eligibility and documents required before applying for one.

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