Our final blog post for this week will cover another aspect of high value purchase. The only way you are bound to be piled with multiple debts is if you are a spendthrift or if you have no control over your spending urges.
Handling credit obligations is not everyone’s cup of tea. It is a bitter-sweet experience for someone who avails credit with gusto, but due to various circumstances, struggles to repay the availed credit. A number of salaried individuals struggle with credit obligations and as a result go through stress.
What is Debt Consolidation Personal Loan?
Debt consolidation personal loan is a fresh loan availed to pay-off your other individual loans. It is much easier for you to pay-off one creditor each month and cycle a single loan instead of managing multiple ones. A debt consolidation personal loan is also used commonly for unsecured credit instead of secured.
When you move several credit card balances onto a single personal loan, you can reduce the multiple monthly repayments into just one. It does not matter whether it is secured or unsecured credit, your repayment capacity and credit score are always considered for credit approval. Once you avail the credit, you are either prompt in your repayments or struggle with clearing them.
It is always wise to consolidate your debts into a single personal loan, instead of transferring all your credit card balances onto one credit card. The debt consolidation personal loan will be cleared off after a period of time, but a credit card’s revolving repayment structure might test your financial resolutions for a longer time.
Credit card repayments, rent payments, utility bills, etc. can be covered under a debt consolidation personal loan. Once you realize you are in debt, and that you need to clear it off ASAP, you need to ask yourself if a debt consolidation personal loan is the right option for you or not? Debt consolidation is the best way to be debt free. Yes, you will still remain in debt, but you can bring a change in yourself to improve your finances and get your financials back on track.
Everybody does not get a second chance in life. You could be a shopaholic, spending thousands a week but all that can change. Bring in a sense of discipline to pay the only EMI you have to pay and clear the debt consolidation loan as per tenure. Be in control of your expenses and set up auto debits or give a standing instruction to your bank to ensure prompt repayments.
There are 2 ways by which you can consolidate debt. One is by preparing a debt management plan, i.e. hiring a credit counseling agency to negotiate your debt on your behalf. Let’s face it, would this in any way reduce your stress or burden? The debt still remains, right? All that the counselors will tell you would be how much to pay each creditor based on your ability to save. Or, you can apply for a ‘debt consolidation personal loan’. Of course, you can afford to pay for one loan instead of being drowned in debt.
I met a friend recently, who had just paid through the nose for his pompous wedding. He split his entire wedding expense of Rs. 15 Lakhs between his credit card and borrowings from relatives. Now, a wedding is a wonderful occasion which deserves a prominent one-time expense, but once that special day has passed, there will be a time coming when you will have to face your creditors.
Now, its obvious that you don’t have the cash to pay these pestering creditors immediately. So what does one do in such a dire situation? asked him to simply apply for a debt consolidation personal loan from Loan Singh. Yes, he is a friend, but being salaried and having the appropriate credit score was enough for me to get convinced of his repayment capability.
Debt Consolidation Personal Loan in India
A debt consolidation personal loan is an unsecured loan that solves the quick fund requirements for clearing multiple credit obligations or pending dues. As it is an unsecured loan, it does not require any collateral. For salaried individuals, gathering funds within a short span of time, is not possible via traditional banking solutions. These solutions that take up to weeks to disburse funds. For a debt consolidation personal loan, your creditworthiness determines if you can pay the loan EMIs regularly, and that too, without straining your daily living.
No collateral – Having no collateral gives a personal loan an advantage over a secured loan. Even if you do not own any assets, you can at least get funds from Loan Singh.
Multiple purposes – A personal loan can be availed for a number of purposes – such as shopping, buying consumer durables, celebrating festivals, buying used vehicles, getting the latest gadget, traveling for a holiday, credit card refinancing, home improvement, job relocation, medical emergencies, home renovation, marriage arrangements, etc.
Best Debt Consolidation Personal Loan Website?
If banks are slow to provide quick personal loan digitally, then which is the best online debt consolidation personal loan website to trust? Despite India’s digital lending sector still being in growth phase, one Fintech player has managed to tread farther than others in the segment.
The name of this Fintech is Seynse Technologies. Seynse Technologies has developed Loan Singh – A digital lending platform which lets salaried individuals apply and avail quick online credit card refinancing personal loan.
Loan Singh Review
Loan Singh presents a number of advantages over other online platforms. Some of these advantages are
- Minimal documentation
- Fixed monthly EMIs
- No hidden fees
- Easy online loan application process
- Transparent process
Why Choose Loan Singh For Credit Card Refinancing?
Before looking to apply for a debt consolidation personal loan, understand that although your debt would be wiped off, you will still be under the obligation to clear off the personal loan. Look at your spending patterns and how much cash remains with you after spending for personal needs towards loan EMI repayments. Budgeting is crucial here.
- Swift processing
At Loan Singh, everything from application to disbursement happens online. With only Aadhaar, PAN and Bank statement/netbanking credentials, you can apply for a personal loan and pay for your emergency financial requirements.
- No collateral
Having no collateral requirement gives a personal loan an advantage over the secured loan. Even if you do not own any assets, you can at least get the funds from Loan Singh.
- Instant approval
If you provide your Aadhaar card, PAN card, and latest 6 months (netbanking downloaded, salaried account’s) bank statement, then you can almost surely get an instant approval. Your credit score needs to be good as well. For first timer credit applicants, the last 6 months statement is mandatory.
- Multiple purposes
An online personal loan can be availed for a number of purposes. The purposes of loan can range from the purchase of household appliances, electronic gadgets, debt consolidation, purchase of gold, holiday travel, instant emergency loan, home improvement, job relocation, medical expenses, home renovation, purchase of second-hand vehicles, to wedding loan, etc.
- Loan amount and tenure
The loan amount for a personal loan at Loan Singh can range from Rs.50,000- Rs.5,00,000. The repayment is done via affordable EMIs, with interest rates on reducing balance method. The personal loan tenure can be from 3 to 36 months.
- Equated monthly installments
You can find out about the EMI amount you will be required to pay each month by making use of Loan Singh’s personal loan EMI calculator. You can avoid the default in EMI payments by providing Loan Singh with permission to auto-debit the EMI amount before the EMI repayment due date. All you need to do then is to keep sufficient funds available in your account.
- Hassle free process
The personal loan process at Loan Singh is hassle-free because there is no hefty paperwork or running from bank to bank or filling multiple forms. You can apply for a personal loan right from the confines of your home and get the loan approved in just a few clicks.
- Information security
With Loan Singh being SSL (Secure Socket Layer) certified; all your personal and financial information submitted remains private and protected. You also don’t have to worry about the physical storage of approved documents or attested photocopies like in traditional lending processes.