The 3 Intelligent Ways to Repay Multiple Personal Loans
Posted by Sumit Dahiya on December 31st, 2021
Multiple loans is not a fictional creation. Many of us living modern lives have a personal loan and credit card to our names, add a home loan and a car loan to it. As they say, if you do not love your job, take a home loan, you will start loving it. Take a personal loan as well, start loving your boss also.
Fun apart, living with multiple personal loans is a nightmare, managing multiple repayments, staying on top of the payment schedule. Ensuring there\'s money in the bank. Its not easy.
Let us look at three intelligent ways to repay multiple personal loans and other liabilities.
- Switch Credit Card Balance
Credit Cards are perhaps the most significant problem areas of financial mismanagement in todays life. Add the Buy Now and Pay Later (BNPL) offers that work similarly to credit cards. Essentially these are all personal loans with astronomically high-interest rates. For instance, a personal loan might charge an interest rate of 10% whereas, a credit card or BNPL might be charging an interest rate of more than 50%. Instead of living on minimum repayments and paying high-interest rates to the credit institutions transferring the credit card payment to a personal loan in Mumbai or other top cities in India makes more financial sense.
- Debt Consolidation
Debt consolidation is the practice of combining multiple loans into one personal loan. The eventual loan makes life more manageable as the borrower can combine the personal loans and credit cards into o\ne loan. A single loan makes the monthly outgo predictable with a single repayment date. Unlike the common misconceptions, debt consolidation does not require one to declare bankruptcy or hire a lawyer. Debt consolidation works like a personal loan where a financial institution asks for the personal loan documents required for verification. Using a Debt Consolidation is an intelligent way to manage multiple personal loans and credit cards.
- Early Repayment
An intelligent way to repay multiple personal loans is to close one loan at a time at the earliest. There are a few aspects to consider while closing a loan earlier.
A. Consider Interest Rates
Closing a loan with the highest interest rate makes the most financial prudence, resulting in a lesser outflow of money. However, if the loan with the highest interest rate happens to be a personal loan with a long tenure, it might not be a very motivating thought. Thus, choose a loan with a high-interest rate that can be closed earlier by making advance payments.
B. Pre-Payment Charges
If a personal loan in Mumbai or another loan comes with pre-payment charges, it might not be prudent to pay that extra amount to financial institutions. Instead, choose a loan that does not have any pre-payment charges.
C. Close the Least Amount of Loan
We are all emotional beings. Witnessing a loan closing is an unmatched satisfaction. Choosing a loan that can be closed at the earliest gives a huge mental boost to carry on a wise financial journey.
Heres a bonus way to choose the best personal loan for your financial requirements or debt consolidation.
LoansJagat
Use LoansJagat to avail a personal loan in Mumbai or other top cities across India. LoansJagat allows applicants to compare the choose the personal loan offers from leading financial institutions. Applicants can choose the best offer as per their requirements. A dedicated relationship manager guides them through the entire journey. The portal guides the personal loan documents required and highlight the terms and conditions to make an informed decision.
Get your debt consolidation personal loan processed from LoansJagat and get the best personal loan in Mumbai or any other city across India.
Use the above strategies to reduce your financial burden by repaying multiple personal loans or credit cards. The intelligent ways to manage credit cards and personal loans make financial lives better.
Visit the LoansJagat website, get the best offers of personal loans and debt consolidation. LoansJagat is Indias leading platform for personal loans and other loans for individuals and businesses.
