Jun 22 • 2 mins read
Debt Consolidation Loan: The Best Way to Manage Debt on Your Own in 2018
Credit cards are a great financial tool if you use them right. They can help you manage your financial needs quite effectively, along with providing a ready source of funds in emergencies. Of course, the same flexibility and ease of usage can also make unplanned spending a habit, leading you into a debt trap.
With high-interest rates or hidden processing fees, you can find yourself facing a huge pile of debt if you aren’t careful. This is even more likely if you have multiple credit cards or loans with different interest rates and payment terms. Managing your debt correctly is essential, and a debt consolidation loan can help.
Why Consider a Personal Loan for Debt Management?
Taking another loan to pay down your debt may sound crazy, but it’s actually quite helpful. With a line of credit from MoneyTap or a personal loan from a bank, you can pay off high-interest loans and shift your debt to a more affordable and convenient platform.
Rather than trying to keep track of multiple payment due dates and minimum repayments, a single low-interest credit line helps you consolidate your debt. Since you will be making only one monthly payment to repay a consolidated loan, it will be easier to stay on top of due dates and ensure that you don’t incur late payment fees.
Why is MoneyTap’s Debt Consolidation Loan Your Best Bet?
Here’s why a personal line of credit from MoneyTap is a better bet than a bank loan for debt consolidation:
- Flexible EMI Options – You are not restricted to EMI payment terms that have been set by a bank or financial institution. MoneyTap allows you to choose an EMI repayment option that works as per your needs, ranging from 2 to 36 months.
- Affordable Interest Rates – If you have a good credit score, you will be more likely to get a lower interest rate than most credit cards or traditional loans. And unlike your credit card, MoneyTap does not charge higher interest on cash transactions.
- Interest on Used Amount – With a personal loan from a bank or other lenders, you are charged interest on the complete loan amount whether you use it or not. With MoneyTap’s credit line, you only pay interest on the amount actually used.
- Flexibility of Usage – In addition to using a personal line of credit for debt consolidation and repayment, you are free to use the remaining funds from the approved limit for any purpose. Unlike bank loans, there are no questions asked.
- Build Your Credit – Multiple unpaid or overdue loans and credit cards can harm your credit score, making it difficult to get loan approval in the future. MoneyTap’s debt consolidation loan can help you maintain and build your credit history.
Debt can quickly get out of hand, but planning your repayments helps you gain control over it. Instead of running up the balance on another credit card, use MoneyTap to end this vicious cycle and move towards a debt-free life!