Should You Repay Your Debts With A Personal Loan?

By Sanesh Mathew | April 9, 2019

Borrowing from your friends, family members or a money-lender can prove costly in many ways. Instead, consider taking a Personal Loan to repay your debts. Here’s why.

Should You Repay Your Debts With A Personal Loan?

Most of us tend to depend on our families or friends when we are in a debt. This is considered the fastest and easiest way to get a hold of that much-needed cash. However, there is the whole obligation aspect attached to borrowing from a friend or family member. And, in case you can’t repay the amount on time, it can strain your relationship with the lender. Now you wouldn’t want that, would you?

Additional Reading: Smart Ways To Use A Personal Loan

Now you may consider borrowing from a money lender. But, hey, don’t forget that money lenders charge a high rate of interest. You’ll be shelling out way more than you borrowed. So, bad idea! Then what should you do, you may be wondering? Well, the answer is simple – get a Personal Loan. Here are four benefits that Personal Loans offer when it comes to servicing your debts:

Affordable EMIs & Convenience

Unlike borrowing from a friend, family member or money-lender, a Personal Loan lets you choose your preferred loan amount, although based on your eligibility, and your preferred loan tenure. This means that you can repay the borrowed money to the lender in affordable EMIs, putting no pressure on your wallet. Banks and NBFCs usually offer up to six years tenure for repayments.

Also, you do not have to provide any collateral to the bank or NBFC. Plus, there’ll be no questions asked regarding how you’ll be spending the amount. And the interest rate, again depending on your financial profile, is usually much lesser as compared to other options.

Additional Reading: On A Tight Budget? Why Worry When You Can Pay In EMIs?

No Obligations

Borrowing from friends and family means you must repay the borrowed amount within the promised date, without fail. And you’ll probably have to pay the entire amount in a single instalment. So, like we mentioned earlier, if you fail to repay the amount, it can affect the relationship you share with that person.

However, with a Personal Loan, you do not have to be in the awkward obligation position. Plus, you can enjoy the convenience of paying the borrowed amount in EMIs that you can afford.

Great For High-Interest Debts

Debts which charge a high interest rate can put a strain on your finances. With a high-interest debt on your plate, you’ll be coughing up a huge chunk of your income towards it on a monthly basis. This can ruin your budget and you’ll probably be short of cash to meet your monthly expenses. And this eventually can lead to more debts.

So, how can you get rid of this debt and gain control over your finances? Well, opt for a Personal Loan. It can help you pay off your entire debt in one shot. Once your debt is cleared, you’ll just have to worry about servicing your Personal Loan EMIs, which, if you choose the tenure wisely, will be well within your budget.

Great For Credit Card Debts

At some point in our lives, we all fall prey to Credit Card debts. So, if you haven’t been using your Credit Card/s judiciously, you would have already racked up a lot of debt. But, not to worry! You can get yourself a Personal Loan and clear up the outstanding on your card/s and pay off the loan in affordable EMIs. This way, you won’t end up missing any due dates.

Additional Reading: 5 Essential Personal Loan Know-Hows

A Personal Loan is indeed the best option to clear your debts, don’t you agree? Considering taking one? Check out your options.

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Category: Debt Personal Loans
Sanesh Mathew

About Sanesh Mathew

A talkative sleepyhead, Sanesh, enjoys watching horror movies, listening to music, reading all things related to personal finance and wandering aimlessly (walking meditation, he calls it!). He refers to himself as a 'simple human being with a rather chaotic mind'.

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