Have you ever been in a situation where you needed money urgently? Who is your first choice to ask for money? To whom do you go to borrow the money? Some of you may be having a credit card and may use that, but what about those who do not have one? Some of us may even borrow from money lenders who charge a high rate of interest. While some people prefer going to our close family and friends. But you know borrowing money from close ones may affect your relations in a long term. If you can connect with any of these situations then it is time to consider personal loans to repay all your debts.
A personal loan is something that can help you with this problem. You can take a personal loan to repay your previous debts including the one taken from family or friends to paying your credit card debt. This could save your relations and also improve your credit score. A personal loan provides you with many advantages starting from interest rates to affordable equated monthly installments (EMI).
SOME BENEFITS OF A PERSONAL LOAN TO REPAY A DEBT ARE:
1. AFFORDABLE EMIs
One of the best products offered by any bank is a personal loan. These loans are often unsecured which means there is no need to provide any collateral against the loan. And the best part is there is no restriction on how you choose to spend the loan amount unless you repay it. The loan amount is easily sanctioned and disbursed in a couple of days. The loan is repayable in affordable equated monthly installments or EMIs within a tenure that you select. Generally, the tenure offered by banks to repay the loan amount is a minimum of 1 year to a maximum of 5 years. In this way, you will not have the burden of paying back the huge amount all at once.
2. INTEREST RATES
Personal loans are generally available at a range of interest rates. You can choose the one that suits you the best. You can also consult your bank representative. And also, the interest rates may be fixed or floating. In the case of floating rates, your repayment amount may go down considerably.
3. NO OBLIGATIONS
Borrowing money from your friends and family at the time of crisis can put you into an obligation that you may want to ignore. Being indebted to close ones can affect your relationships if you are unable to repay them as promised. Also, the amount needs to be paid all at once. A personal loan helps you to repay all your existing debts without any obligation. With this, you can repay your relative all at once and pay off the loan amount in EMIs.
4. MAINTAIN YOUR CREDIT SCORE
Many of us often use credit cards to pay any small or big amounts at the time of purchase. But, before we realize that we need to pay our credit card bills, it’s becoming a huge accumulated amount and also, the rate of interest charged on credit cards is very high. At such a time taking a personal loan to repay the credit card debt is a good idea. This will help an individual to clean their credit history and maintain the credit score. Your repayment history is an important parameter that affects your credit score.
5. SYSTEMATIC APPROACH TO REPAY DEBT
When one takes a loan from money lenders, the interest rate is high and when they are unable to repay it then starts the game of money lenders. They double their already high interest rates and, in this way, your repayment amount becomes more and more huge. In some cases, the interest amount surpasses the principal amount. Thus, one gets sucked deep into the debt trap. A personal loan becomes handy to repay any such type of debt and get out of the trap.
Thus, a personal loan is very helpful to fulfill a variety of our monetary needs. Especially in high debt situations, one may opt for personal loans to become debt-free as it is payable in affordable EMIs and low-interest rates when compared to others.
CREDIT MY DEBT may help you with your debt settlement. They provide many debt settlement services along with personal loan options to help you repay all your debts. With the best Debt Settlement company, you can go easy about your debt-free future.