Credit Card Refinancing: How to apply for Debt Consolidation Loan

Credit Card Refinancing: How to apply for Debt Consolidation Loan

Are you carrying too much debt on your credit card that it has become tough to repay it off? Are you even facing issues even with the payment of the minimum amount due?

If yes, then it’s time to go for the credit card refinancing facility and say goodbye to higher interest debts. Clearing your credit card dues is vital as it coughs up one of the highest ever interest rates.

Hence, if you won’t make timely payments, it will keep accumulating more interest, and you will become debt ridden.

In the same context, let’s know about credit card refinancing and its benefits. Let’s also see how the loan against property debt consolidation can help you. Let’s go!

What is Credit Card Refinancing?

The credit card refinancing is nothing but refinancing the debt on your credit card. It is when you pay off the high-cost credit card balances with another loan with a lower rate.

As a result, you end up saving money because of the lower interest rate on the new loan pitted against old balances the credit cards.

How the Credit Card Refinancing Benefit you?

  • Lets you save on interest rates by paying off high credit card debts accumulating higher interest rate
  • Assists in repaying the outstanding debts faster by scheduling a monthly payment on a fixed repayment plan
  • Helps to boost your CIBIL Score by lessening your credit card utilization ratio
  • Helps fix the monthly payment and interest rate to keep off interest rate and payment increase. It is also vital to know because a credit card debt generally carries a floating interest rate.

Also Read: Will my credit card help in improving my CIBIL?

Is Loan Against Property Debt Consolidation a Better Idea to Settle Debts?

Most of the people opt for a personal loan to refinance their credit card debts. However, the personal loan comes with a higher rate of interest and a shorter tenor of 2-5 years.

Is your credit card outstanding is higher or do you have 4-5 credit card bills to settle? Then, a personal loan may not look like a favourable option.

You will be forced to close the personal loan shortly, and that will more or less press you to pay higher EMIs per month. In turn, it may not help you manage other expenses in life.

How the loan against property debt consolidation works wonder?

The loan against property debt consolidation is pledged against your property. Hence, you end up getting a large amount at a lower interest rate.

As per your eligibility, income, repayment capacity and valuation of the home, you can avail an amount. The lower interest rate with the loan against property debt consolidation is a boon for credit card owners with too many debts.

They can simply use the loan against property debt consolidation amount to pay of the outstanding on the credit card and pay just one EMI. The loan against property debt consolidation also comes with a wider tenor to help you pay smaller EMIs.

As per your eligibility, you can get a tenor ranging between 2-20 years and pay a smaller EMI per month. This way, your EMI payment won’t eat up your monthly income’s considerable portion.

Hence, if you are stuck with credit card debts and if you have a property, you can apply for the loan against property debt consolidation. This way, you can settle the debts.

To get to the best loan against property debt consolidation deals, you can shop around, compare the deals online, and then only make a final decision.

Bajaj Finserv lets you enjoy pre-approved deals on loan against property debt consolidation, home loans, personal loans and other financial products. Such offers will let you go through the loan formalities minus issues and fast.

To discover your pre-approved loan offers, you will need to share a few of your basic details such as name and mobile number.