There may be times when your EMIs might become too challenging on your financial plan. In such a time, you might be tempted to avail another loan and make use of the amount to meet your expenses. Understand that a debt trap is near when you will require to pay back both loans simultaneously and it might become too much to deal with.
Most of the credit card companies allow you to pay just the ‘smallest amount due’ to carry forward the residual to the next month. It might save you from paying a penalty or late fee, but you will require paying the interest on the same which might range 20-44%. If you carry on paying only the minimum bill, then a debt trap is near.
When you see that you have piled several EMIs that are eating a significant part of your income, then you can avail a debt consolidation loan. A debt consolidation loan is an addition of personal loan and is designed for the function of paying off your present debts. The personal loan for debt consolidation assists you to pay off all present debts so that you can pay just one EMI rather than many. A personal loan for debt consolidation can allow you to take loans from leading banks and non-banking finance companies.
