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Most of us tend to borrow money from friends and family when we require some financial assistance. However, you may not like it, but you do it because you think you hardly have any other choice. But borrowing money from friends and family can put a strain on your personal relationships and put you in an awkward position of obligation, especially if you are unable to repay the loan amount on time. If you can identify with any of these scenarios, you should probably consider taking out a personal loan to repay your debt.
You can pay back the loan in affordable EMIs: Personal loans are one of the best products offered by the banks because you do not have to provide any collateral for this loan. The loan amount is typically sanctioned and disbursed in a couple of days. Moreover, there are no restrictions on how you choose to use your personal loan amount as long as you repay it. You can calculate your personal loan EMI with the help of a personal loan EMI calculator and repay the loan amount in EMIs, by selecting a tenure that suits you. Most banks generally offer a minimum tenure of 1 year and a maximum tenure of 5 years for personal loan repayment.
You do not have to take on any obligations: Being indebted to people you know might affect your relationships if you are unable to repay the loan amount within the time promised. Also, there is the added pressure of repaying the loan amount in a single installment making the process difficult. On the other hand, a personal loan allows you to pay off your existing debt without going into any obligation.
Personal Loan helps you manage your high-cost debts: High-cost debts can often put a damper on your financials and affect your monthly budgets since you would be spending a large chunk of your income in paying off these high-cost debts. A personal loan can help you pay off this high-cost debt within a single payment. Once you have paid off this high-cost debt, you can pay your personal loan in EMIs.
Personal Loan helps you settle your Credit Card debt: Most of us use our Credit Cards to make big and small purchases. Failure to Repay Credit Card debt within the set down time period can result in you having to meet with high penalties. You can pay off your credit card debt in a single installment so that you do not suffer any additional penalties, the personal loan, in turn, can be settled in easy EMIs.
Personal loans are often used for debt consolidation and consolidating credit card debt to avoid the stress of multiple repayments. Paying off credit card debt with a personal loan makes sense in many situations. But make sure you’re living on a budget and living within your means so you’re ready to consistently make your personal loan payments and behave responsibly. Consider all of your options and make the choice that you think will help you to become debt-free as soon as possible.
