For debt consolidation, you should take a new loan with a lower interest rate, long repayment tenure, and no prepayment or pre-closure charges.
People take loans to achieve their short- and long-term financial goals in anticipation that they will repay the debt in the future. While many are able to do so in time, some fail and their dues snowball damaging their credit scores. Here are a few points to remember while planning debt consolidation.
Identify target debts
First segregate your loans on the basis of interest rates. Long-term high-interest debts could be on top of your priority list while short-term low-interest debt may come down. Debts such as personal loans, credit card dues, etc., could top the list whereas low-interest loans…
Read the full article at: https://www.financialexpress.com/money/your-money-four-tips-for-a-successful-debt-consolidation-plan/2194057/
