While you are juggling multiple loan repayment due dates and outstanding dues, there are high chances that you may miss a payment. Even one misstep can cause considerable damage to your credit score, wreaking havoc on your finances for years.
But consolidating your debts with an unsecured personal loan can make things manageable for you, as you can bundle them up into a single loan, requiring one set of scheduled repayments.
You may engage with a reputed digital bank to take a small personal loan intended to consolidate your debts. They offer personal loans at low-interest rates, customised to your financial position. Here’s when you can solidify your debts with a personal loan.
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You Wish to Simplify Your Monthly Repayments
If you have multiple loans, you will be familiar with how challenging it can be to track different repayment timelines. And every new personal loan further makes your tracking and fulfilling repayment obligations much more complex to align with your earnings and expenses.
You can accumulate all of your existing debts into one consistent loan repayment by applying for a debt consolidation loan.
Leading digital banks offer the best customised loans for this purpose. You may use the funds from this loan to pay off other existing debts and then repay your new personal loan over your decided flexible repayment term. It ensures you have more control over your cash management.
You Want to Lower Your Interest Rate
Consolidating your debt with a small personal loan can save you a considerable amount of money.
For instance, you are paying off balances on multiple credit cards, each with an interest rate of over 10%. If you can take a debt consolidation loan at a lower interest rate (even 2% less), you must consider using it, as you can save more money in the long run.
Top personal loan lenders perform personalised credit checks to decide the fixed interest rate on your personal loan. While they offer loans as low as around $2k, they ensure the interest rates are relatively low compared to other forms of debt. It makes their personal loan packages quite affordable.
You Want to Reduce the Cost to Maintain Your Debts
When you bundle your debts with an unsecured personal loan, you might be able to save on administration and other fees, which may be high for your existing debts.
For instance, all credit card transactions are subject to a 0.8% credit card administration fee for MasterCard in Australia. Instead, you may consolidate all your debts with a personal loan that comes with lower charges.
Reputed digital banks provide small personal loans for bundling your debts, with no establishment fee and any other hidden charges. Moreover, they don’t demand any early payment fees, thus allowing you to pay out your balance on your loan early, at no additional charges.
Find A Reputed Digital Bank
Look for a reputed digital bank that helps calculate your repayments and required interest rates. They should provide a customer-friendly online platform to apply for a personal loan. Their loan approval process should be straightforward and quick and ensure they immediately release the funds to you to start your debt consolidation right away.