A debt can bleed your savings, leaving your savings account dry. You may earn a good income every month, but debt can drain a large amount of your earnings. However, a debt consolidation loan in India can save your savings from being drained by debt payments. If you are in debt, you can consolidate your debt to save your savings.

Let’s discuss the benefits of debt consolidation

1. Low Interest Rate

The biggest problem with credit card debt is its high interest rate. If you are reeling under the debt of multiple credit cards, you can consider consolidating the credit card loans into a personal loan and save on interest. Credit card companies charge high interest rates; however, personal loan has a much lower interest rate.

2. Safe Exit Plan

A debt consolidation loan in India provides a safe exit plan from high-interest credit card debts. A personal loan can help you come out of debt within a short time. A mistake most people make with credit card payments is that they pay the minimum amount, which includes only interest. A personal loan can get you out of credit card debts in a time-bound manner. 

3. Increases Cash Flow

Consolidating your credit card debt into a personal loan can increase your cash flow. Even a slight reduction in interest can prove to be a big help in the long run. You will have more cash to spend or repay your loan quickly. Increased cash flow will remove unnecessary burden from your savings.

4. Simplified Repayments

Perhaps it is the biggest advantage of a debt consolidation loan in India. A personal loan can simplify your repayments. For example, you will know how much to repay for the debt. The prior knowledge of repayments will help manage your funds. You will have better control over your finances.

5. Increased Credit Score

When you repay your debt on time, your credit score increases. An increase in credit score can make you eligible for pre-approved loan offers and reduced interest rates. If needed, you can even borrow a new loan to fulfil your needs.

A debt consolidation loan in India can save you from high interest rates that can bleed your savings. If you want to repay your credit card debt on time, you should consider consolidating your debt. A personal loan at a low interest rate is the best option, instead of repaying a credit card with a minimum amount.