Credit card usage has been on the rise off late in India. There are a number of reasons for this increase in credit card activity. An increase in spending power, easier shopping, and access to money in case of instant need are some. However, if you skip card payment or pay only the minimum amount, it is a cause for concern. The interest rate is quite high for credit cards. Hence failure to pay can lead to a mountainous debt. Not to mention the credit score goes for a toss.
Hence if you are under considerable credit card debt, take heed. This is a dangerous state, and you need to rectify it soon. The best option is to go for a personal loan and clear the credit card debt.
This type of loan is generally called a personal loan for debt consolidation and offers several benefits. To name some, its approval process is fairly simple and very flexible payment options.
Let us look at why a personal loan is good for clearing credit card debts:
One does not have to show any collateral: This is a massive plus point for someone who is in debt. Your debt amount may be quite high, but most lenders will approve a personal loan up to 25 lakhs, that too, without any collateral. So you can easily clear your credit card debts.
The repayment process is quite stress-free: When you are in debt, repayment is a constant headache. With a personal loan, you can choose quite a flexible repayment schedule with a long tenure. This way, you can consolidate your debt into an easy to pay EMI system over a longer period and be relatively at ease.
The approval process usually gets over in an eye blink: When someone is in debt, time is the biggest factor, and all lenders understand this. A personal loan to clear debts gets approved lightning quick. The turnaround time is at maximum a day in most of the cases. Also, the amount is directly sent to the bank account, so there is no need to run circles in getting the money.
There are proper mechanisms in place for one to follow their loan status: All lenders offer an online portal where one can easily keep a watch on their loan status. You just need to log on and get all the data related to the payment schedule, the amount left to pay, and so on. There are also very lucrative incentives for those who want to go for a foreclosure of the loan amount.
So all the benefits of getting a personal loan to settle credit card debts have been thoroughly discussed. Please note that if you possess a credit card debt, then do take immediate steps to rectify it. Credit card debts are among the most dangerous form of debt traps one can fall into. The high-interest rate keeps on getting compounded, and the debt may run into lakhs.
Fortunately, there are mechanisms to help people forego this debt. The personal loan for debt consolidation is one such smart and beneficial way. Any prominent lenders are willing to approve these loans, Bajaj Finsrev being a good option. So make haste and clear that credit card debt today itself with a handy personal loan and remain stress-free.