A TO Z OF DEBT CONSOLIDATION
Interesting processes, where in you are taking a new loan to pay off other loans are known as Debt Consolidation. It is a runaway hit in India, since most of them are having lot of debt to clear. Without a shadow of doubt, they will take major loans to clear of debt.
Benefits of Debt Consolidation In India:
Some of the major benefits of the debt consolidation taking place in India are as follows:
Easier To Manage Finances: Plays a vital role in superior management of your finance in a systematic and satisfactory manner. A single loan taken by you plays a major role in clearing rest of the debts.
Psychological Edge: Debt consolidation always has been a boosting factor in offering peace of mind to the customers in India.
Enhance Credit Record: The moment one starts clearing the debt, credit rating along with the credit profile will improve a lot. You will have a long term taste of the financial health that has deprived you for many years.
One Bill Payment Multiple Clearance: This is the best part, one bill payment can knock off the un-cleared debts in one shot.
Avoid Bankruptcy: Superior form of debt consolidation play a major role in throwing bankruptcy out of the window. If you turn out to be bankrupt, then you lose right to take loan and other credits.
Disadvantages Of Debt Consolidation In India:
Some of the major drawbacks of the debt consolidation in India are:
Destroys Your Credit: The debt management company in India, can destroy your credit ratings, as they may not release the money required to clear the debt on time.
Issue Never Gets Resolved: You take a loan to clear off other debts, however, your problem will never get resolved. You will have to do something to clear the major loan that you have taken, and it is an area of worry.
Huge Interest Rates: When you undertake an effective debt consolidation, every possibility that loan you obtain will come with higher rate of interest. This can further put you in trouble and affect your planning.
Debt consolidation is always a hit in India, because people do not have sufficient finance to meet their needs.
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