Credit can be both a good servant and a terrible master. Credit can be a useful tool to help you manage your goals, as long as you have control over your credit and can pay the monthly repayments on time. Problems arise when you go beyond your financial limits and lose control of your finances.
You can pay your purchases with credit cards. This small, rectangular plastic bank is portable and can be used whenever you like. There is no problem if you pay the balance by the due date. Problems arise when you don’t have enough money to pay the full amount. You are forced to pay only the minimum amount. The balance accrues interest @ 2-3% each day until the due date. Sometimes, people will take out another credit card in such situations to pay off their first. They are often caught in a vicious circle of debt before they realize it.
It is not possible to borrow from Peter to pay Paul. You need to find a new approach to solve the problem of credit card debts. Here are some things you should do:
Step 1: Make a list of all your credit cards outstanding across different cards to calculate the amount due.
Step 2: Contact a lender (LoanTap, for example) for debt consolidation or credit takeover loan.
Step 3: Pay all credit card debts with the consolidation loan.
Step 4: Choose an affordable tenure within your monthly budget.
Step 5: Pay the Debt Consolidation Loan on Time and Rebuild Your Credit Score
Step 6: Make lifestyle changes, reduce discretionary spending, and tighten your monthly financial budget.
What does a Credit Card Takeover Loan do?
LoanTap offers a personal loan starting at 18% per annum for terms ranging from 6 to 5 years. This is cheaper than paying 24-36 percent on credit card balances.
Personal loans must be repaid within a predetermined period at a predetermined EMI. There is no option for postponement or delay. This will help you develop a sense of discipline and force you to pay your EMI on time.
Consolidating all debts and switching to a loan is a difficult decision. Although it may seem odd, it is the best way to get your finances on track.
Multiple credit card debts can cause permanent damage to your credit history and credit score. This can reduce your chances of getting a credit line in the future, especially if you urgently need funds.
Debt consolidation or credit card takeover loan can help you start over.
Who can get a credit card loan to buy a new card?
This personal loan is available to Indian citizens and residents over 21 years old with a net monthly income exceeding Rs. 30,000.
How do you apply for a credit-card takeover loan?
To apply for a loan, you will need to either visit the LoanTap website or install the LoanTap app from your smartphone. After that, you will need to complete an application online and upload all necessary documents.
For salaried professionals, the mandatory documents include:
After the documents have been uploaded, the LoanTap team will review your application. Your loan application will likely be approved if all documents are in order. The amount will then be credited to your bank account. From application submission to the credit of loan, the entire process takes less than 24 hours.
You can choose the term of your loan and pay a fixed EMI. You will not be charged a prepayment penalty if you cancel the loan within six months.
What are some of the benefits of taking out a personal loan?
Personal loans are unsecured loans that don’t require collateral. This allows you to get the loan faster and solves the problem of paying off expensive debt or switching to a lower-interest one.
Interest savings A personal loan with 18% interest is much cheaper than a credit card at 24-36%. You can save some interest by switching to personal loans. This will also help you close your loan quicker.
Better money management – You can plan a monthly budget and stick to it. The EMI payment must be made on a specific date.
Reduce discretionary spending – You will have to cut back on discretionary spending to manage your budget better and pay the EMIs on time. This will help you to be more financially disciplined and manage your spending.
No paperwork required –Online personal loan applications don’t need any paperwork. There is no need to fill out multiple forms, documents and photocopies. You can upload only a handful of documents.
Instant personal loans disbursed within 24 hours of applying – It is easy to transfer from credit cards to personal loans faster once the decision has been made.
Credit Score Improvement –While your credit score can’t be repaired overnight due to poor credit card management, you can make an honest effort by paying off all your debts and focusing on one personal loan. More than a p
