{"id":20004,"date":"2021-06-18T06:49:34","date_gmt":"2021-06-18T06:49:34","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=15949"},"modified":"2023-06-21T10:02:42","modified_gmt":"2023-06-21T10:02:42","slug":"how-can-you-consolidate-multiple-loans-with-the-help-of-personal-loan","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/personal-use-loan\/how-can-you-consolidate-multiple-loans-with-the-help-of-personal-loan\/","title":{"rendered":"How Can You Consolidate Multiple Loans with the Help of Personal Loan?"},"content":{"rendered":"\n

Debts have their sneaky way of snowballing \u2013 you start out with one loan and then the other until it all piles up into this mountain that doesn\u2019t seem to move.<\/p>\n\n\n\n

If you’re in a similar position, you can go for consolidation of loans! By taking personal finance, you can merge different loans into a single one and make debt management far simpler. Such a process also allows you to take control of your loans and reduces stress levels significantly. However, that\u2019s not it!<\/p>\n\n\n\n

There are several more benefits to debt consolidation. Read more to find out.<\/p>\n\n\n\n

Why use a personal loan for consolidation?<\/strong><\/h2>\n\n\n\n

Given below are the reasons why taking personal finance for debt consolidation is a move in the right direction –<\/p>\n\n\n\n

\u2022 Single EMI payment<\/h3>\n\n\n\n

When you opt for a personal loan<\/a> for loan consolidation, all other dues are merged into a single amount, which you need to repay monthly. Thus, you don’t need to track multiple EMI dates or worry about defaulting on instalments, which can attract heavy penalties.<\/p>\n\n\n\n

\u2022 Lower interest rate<\/h3>\n\n\n\n

Instead of paying different interest rates for multiple dues, you can take a new loan at a competitive interest rate and consolidate your debt. Doing so can also bring down your monthly instalments and make them more affordable.<\/p>\n\n\n\n

Additional Read:  <\/strong>5 Ways in Which Personal Loans Can Help You Save Money<\/a><\/p>\n\n\n\n

\u2022 Fixed repayment tenure<\/h3>\n\n\n\n

Personal finance solutions typically have a fixed tenure that ranges from 1 to 5 years. Since you will need to repay the loan amount within the predetermined period, you can plan your finances accordingly and clear all your dues sooner. An online personal loan EMI calculator<\/a> will prove handy for this.<\/p>\n\n\n\n

\u2022 Improved credit score<\/h3>\n\n\n\n

Another upside of debt consolidation is that it gives a nice boost to your credit or CIBIL score. This happens because merging multiple loans into a single loan reduces your credit utilisation ratio, i.e., the amount you owe divided by your credit limit.<\/p>\n\n\n\n

Though you may witness a slight, temporary dip in your credit score at the time you acquire a new loan, the long-term gains you see in your credit score, as well as savings on interests, will be worth it.<\/p>\n\n\n\n

Additional Read: <\/strong>What is Debt Consolidation? How Can a Personal Loan Help?<\/a><\/p>\n\n\n\n

Is consolidation of dues the right option for you?<\/strong><\/h3>\n\n\n\n

If you\u2019re struggling to stay on top of your finances, then debt consolidation may be the option for you. However, to decide whether it is right, you must ensure the following \u2013<\/p>\n\n\n\n