Loan Against Property for Debt Consolidation: Know the Important Details

The long festive season starting with Ganesh Chaturthi, followed by Navratri and Diwali in October - November, and Christmas and New Year in December; is finally here. This festive season also marks the end of the year, thus it is the time to celebrate, ask for health and happiness for yourself and your family, and start fresh. On that note, the best way to start fresh is by paying all the debts you owe. If not all, settle the high-interest rate debts, unsecured loans, which are consuming most of your income. 

How Can you do that?

You can take up a secured debt consolidation loan i.e. a loan against property for the purpose of consolidating your debt and save a sizeable amount of your income from being consumed in paying the EMI.

What is Debt Consolidation?

Debt Consolidation for loan against property is the process of taking a fresh, low-interest rate loan to pay off the existing, high-interest rate loan, especially the unsecured ones along with other liabilities. This reduces the overall burden and combines different EMIs into one.

Secured or Unsecured: Which Type of Loan should you go for?

This is probably the biggest debate regarding debt consolidation, and it is likely to continue for a very long time. Each secured and unsecured have unique pros and cons when used for debt consolidation. To talk about a few of them, the very purpose of debt consolidation is to reduce the overall financial burden. Accordingly, if you think practically, debt consolidation is best when done using a loan against property. The primary justification for that is, the capital/ loan is available at a low interest rate.

Also Read: Loan Against Property for Debt Consolidation: The Know-How

Having said that, it’s not necessary to apply for a loan against property for debt consolidation. You can go with other credit options as well, even with the unsecured ones if it suits you.

Additional Read: Consolidate Festival Season Debt with Mortgage Loans