The new cool gadget that everyone is making a beeline for, that dream vacation now available at deep discounts, that super-cool home theatre system that will look great at home – yes these are temptations that we all give in to at times. They all come at a price and sometimes we may be forced to buy them on credit because the offer is too tempting or the need is  genuine . Well, isn’t that why credit cards came into use in the first place? 

Credit cards are one of the most convenient financing options available and we cannot downplay the utility of a credit card in times of emergency. However, the problem arises when people hold multiple credit cards and run up a debt on all of them at the same time. To keep tabs on the multiple payments and their due dates becomes a cumbersome task . To top it all, if you run into a real emergency while you are running these multiple debts, that becomes a cause for stress. Don’t fret folks. LoanTap’s personal loan for Debt consolidation may be just what the financial doctor ordered.

When handling multiple debts becomes overwhelming, you should consider the possibility of getting a personal loan to consolidate all the existing debts. If you are wondering how taking a fresh loan can help you in this regard, let us understand this in detail.

Credit cards  typically carry an interest rate of around 30% i.e. around 2.5% per month. So if you are servicing 3 credit cards of  3 lakhs each you would be shelling out up to an extra Rs 270000 if you leave your outstanding dues unpaid for a year. Now, that’s pretty expensive, isn’t it?

Another issue about holding multiple loans simultaneously is the worry of remembering the due dates for each of them. They could pop up at different times of the month and the minimum amount due would be different for each. They would not be synchronized with your monthly cash inflow and outflow dates. 

One more problem that is likely to surface is that you will find it difficult to apply for a loan elsewhere when you are juggling so many loans. Lenders won’t find it very convincing to lend to you since you are already juggling multiple debts.

The Credit score would also go for a toss if you have multiple debts and end up defaulting on one, even if unintentional.  So, how can you get out of this multiple debt muddle? What is the available solution?

A viable solution would be to apply for a personal loan for the consolidated amount or a little higher amount depending on your eligibility.

Am I eligible for a personal loan?

If

  • You are over the age of 21 years 
  • You are a resident and  citizen of  India 
  • You earn more than Rs 30,000 per month

Woohoo!! You are eligible to apply for a personal loan at LoanTap

What documents do I need to produce?

You need the following documents to be uploaded along with your online application. They are

  • PAN Card
  • Address Proof
  • Salary slip of last three months
  • Salary bank statement of last six months
  • eNach Mandate

How do I know if my application will be accepted?

After receiving the application along with the supporting documents, the LoanTap team will verify the same. Once the documents are found to be in order and the credit score is above the required threshold, your instant loan for debt consolidation will be processed and disbursed to your account within 24-36 working hours.

What are the features of the personal loan?

A personal loan is an unsecured loan that can be availed with minimum paperwork based on a few basic documents. You can borrow any amount from Rs 50,000 to Rs 10,00,000 for a duration of 6 months to 60 months. The rate of interest starts from 18% per annum. You can choose your repayment plan according to your cash flow and convenience. You can use a term, an interest-only EMI or a step-up option based on your personal needs and preferences. No extra charges need to be paid if you are prepaying the loan post 6 months of servicing the loan regularly.

How does a personal loan help with debt consolidation?

A personal loan is a lower interest-bearing loan. Compare 18% annual interest on personal loans to 24-30% interest on credit cards and you can see the glaring difference. Secondly, now you will have to make a single EMI payment once a month. This is so much better than keeping track of multiple amounts and multiple due dates. Once you have repaid the loan, you will be free of debt and you can look to apply for a fresh personal loan whenever the need arises. Your credit score will receive a tremendous boost when the debt gets repaid. This will stand you in good stead whenever a financial need comes up in the future.

In conclusion, we can safely say that you can avail of a personal loan almost instantly from LoanTap and get out of the sticky situation of managing multiple higher-interest debts. Feel free to visit the website and get in touch with one of our advisors if you want to discuss your situation and find the loan that is perfect for you. Do not be bogged down by the burden of balancing multiple debts when there is a much easier financing option available. Just visit https://loantap.in/ and find a simple solution for your financial needs. Once you set your finances  right, you will find peace of mind.

Related articles – When Should You Use a Personal Loan for Debt Consolidation?

Should I Take A Debt Consolidation Loan?

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Satyam Kumar is banking industry veteran with enriched experience of more than 20 years. Apart from founding LoanTap and FinTech Association of Consumer Empowerment, he is an avid traveler and holds keen interest in Blogging. He has amassed profound knowledge in FinTech trends, banking, consumer trends, food and mythology which he loves sharing with others.
Satyam kumarSatyam KumarCEO & Co-Founder, LoanTap asset 8 asset 9
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