Thanks to credit cards, you can carry out everyday transactions seamlessly and make big-ticket purchases right away instead of putting them off for a later date. Further, credit card transactions earn you reward points, and this makes using plastic money all the more beneficial. These cards are also universally accepted and various vendors offer deals and discounts on transactions made with particular cards. However, despite the benefits of owning a card, there is one thing you must be wary of credit card debt.
At the end of the day, when you use a credit card, you borrow finances from an issuer. So, failure to repay can push you into a cycle of debt. Interest rates on credit cards are steep and delayed payments attract penal charges as well. Further, if you fail to pay your dues in full, then you have to pay interest on the balance. Hence, the risk of falling into a debt trap is looming large when you use a credit card without caution.
If you do find yourself dealing with credit card debt, focus on clearing it as soon as you can, before the problem worsens and strains your finances. One option you have is to take a personal loan. Read on to know how a personal loan can help you resolve credit card debt.
You can pay dues at affordable rates of interest
What makes tackling credit card debt with a personal loan a smart option is that the loan brings with it relaxed repayment terms. For instance, with Bajaj Finserv you benefit from interest rates starting at 12.99%, which is likely to be much lower than what’s charged by your credit card provider. Further, you can avoid paying penal charges and save even more. To get an idea of the total cost of the loan, you can use the personal loan calculator before you borrow, you can use this tool to know your monthly exact EMI.
You obtain a large, collateral-free principal
When you take a personal loan from a lender such as Bajaj Finserv, you obtain financing of up to Rs.25 lakh. This substantial amount makes it easy to clear outstanding dues and associated charges without breaking into a sweat. Moreover, personal loans do not have a requirement for collateral and so this is a stress-free option.
You can repay the loan over a flexible tenor
One of the key benefits of a personal loan is the flexible repayment tenor. For instance, Bajaj Finserv offers you a tenor of up to 60 months, which lets you repay loan conveniently, without the EMIs being too heavy on your pocket. You can opt for a long tenor to keep your EMIs small or a short tenor to restrict your overall interest outgo.
In order to take advantage of the features offered by a personal loan, pick your lender wisely. For instance, Bajaj Finserv lists simple eligibility terms, allowing you to qualify easily. The important documents required for personal loan are minimal, meaning that you can start combatting credit card debt from the word go.
Further, you can sign on for the Flexi loan facilities. This feature permits multiple withdrawals from the approved sanction without fresh applications, while restricting interest payments to the amount withdrawn only. It also helps you lower your EMIs by up to 45%.
Now that you know how a personal loan can help you resolve credit card debt, apply for financing without any delay. To avail funds instantly and on customised terms, you can check your pre-approved offer from Bajaj Finserv. Doing so gives quicker access to financing.