- Credit Card Dues Consolidation
- Personal Loan Consolidation
- Home Loan Balance Transfer
1. Credit Card Dues Consolidation
Credit card consolidation involves combining all of your credit card debt and paying it off in one monthly payment. There are numerous ways you can pay off your consolidated credit card debt, from personal loans to balance transfer credit cards. But one thing remains the same regardless of the method you choose: instead of making multiple monthly payments, you will just make one.
Consolidating credit card debt can come with numerous benefits. In addition to only making one monthly payment, you will likely secure a lower interest rate than you have with your credit card company. You might also be able to secure a lower monthly payment and be able to pay your debt back over a longer period of time. Plus, you can potentially improve your credit score in the process of repaying your debt.
Some of the Most Common Methods
A. Credit Card Balance Transfer
A balance transfer is the process of transferring high-interest debt from one or more credit cards to another card with a lower interest rate. This tactic will help apply more of your payments to the principal balance each month rather than interest charges, which can help you, eliminate your card debt faster.
Balance Transfer-on-EMI is a facility that allows you to transfer the outstanding balance from your other bank credit cards to your Credit Card and repay it in easy monthly instalments at a lower interest rate.
B. Personal Loan
A personal loan is a type of unsecured loan and helps you meet your current financial needs. You don’t usually need to pledge any security or collateral while availing a personal loan and your lender provides you with the flexibility to use the funds as per your need.
C. Home Equity Loan
Home equity is the difference between the current value of a house and the outstanding home loan amount. In a home equity loan, the equity on the house is pledged as collateral. Repayment of such a loan is to be made in monthly installments over and above existing home loan EMIs. If the home equity loan is not paid off; your house can be auctioned to recover the remaining amount.
2. Personal Loan Consolidation
3. Home Loan Balance Transfer
Home Loan Balance Transfer or Refinancing or simply Balance Transfer is the process that allows you to benefit from the lower interest rate offered by the other lender. If you have an existing outstanding home loan with one borrower, you can make a home loan transfer, that is, shift the remainder amount to a different borrower who charges a lower rate of interest, the process is termed as a home loan balance transfer or refinancing. This unique home loan transfer service helps a customer avoid high applicable interest rates as listed by one home loan lender and migrate to a lower interest rate structure with another lender.
Benefits of Home Loan Balance Transfer
- Transferring your home loan to from one lender to another lender can lower your monthly payable EMI.
- When you go for a home loan balance transfer it reduces the interest rate for your home loan so you can save a lot.
- When you go for a home loan balance transfer you can also negotiate with your new lender, and can choose accordingly.
- It’s not only about the interest rate; one can even opt for a home loan balance transfer if he/she is not satisfied with the services of the existing lender.
- One can also reduce or increase the tenure period of their home loan with a new lender when going for a home loan balance transfer.