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10 FEBRUARY, 2022
New Year is the time to start life afresh with new resolutions, goals and dreams. You make plans for the year and determine to make the upcoming year better than the last one. The best resolution you can make for your financial health this New Year is getting debt-free. Multiple debts can be stressful and affect your daily life. This is where a personal loan can help you. With a personal loan, you can repay all your borrowings and save money too. Read on to know more.
Even a single default on your credit card bills or loan EMI can lead to negative remarks on the credit report. It can lead to a dip in the credit score and your chances of availing any loans in future. A personal loan helps you deal with this issue. A personal loan comes with a low-interest rate. A lower interest rate means you have to pay a lower EMI, which reduces the chances of defaults. When you pay all your personal loan installments on time, it improves your credit score. A high credit score can help you avail a loan at competitive interest rates and save money.
A personal loan is the best way to consolidate your debts and dispose of multiple liabilities. If you are repaying several loans like education loans, credit card bills, gold loans etc., it can be stressful and confusing. Instead, you can opt for a personal loan to consolidate all the debts and repay them through one loan. With a personal loan for debt consolidation, you do not need to manage different loans at multiple interest rates or remember their respective interest rates. Instead, you can pay the entire debt at one interest rate and EMI. Moreover, personal loans have lower interest rates compared to credit cards.
Credit cards have a short window for repayment. So, if you are in a financial crisis and unable to pay the outstanding bill for a month, you could have to pay high interest and penalty. On the other hand, personal loans are available at flexible tenures, which you can decide as per your affordability. Moreover, you can also prepay the loan and save money on the interest outgo.
A personal loan can be a wise financial decision to fund your big-ticket purchases instead of draining your savings. Your savings can help you earn interest income if you invest them in high-yielding investments rather than exhausting them in making big-ticket purchases.
Availing a personal loan is simple and fast. Moreover, as it has no hidden charges and low personal loan-processing fee, you can easily repay your multiple debts. Also, it can help you fund your various needs, clear off your debts and boost your credit score. However, before applying for a personal loan, you must check your eligibility and affordability.
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