Simply put, debt management is learning to live on a budget, regardless the cause of your debt. A debt management plan helps people reduce and pay off outstanding dues. It works best with unsecured debts like credit cards, personal loans, bank mortgages etc. Secured debts like mortgage, rent, or utility, can't be covered under a debt management plan. Such a plan is necessary if you are in too much debt and can't meet monthly payments, leading to lower credit worthiness. It'll decrease your ability to avail a new loan especially from traditional financial institutions like banks and NBFCs, or get a new credit card, and would increase the rate of interest on the loan as well.
Debt consolidation through Lendbox or peer to peer (P2P) lending is a great way to manage all your loans, and Lendbox enables you to combine all your outstanding dues into one easy payment system. It makes your life easier in several ways.
Debt Consolidation With Lendbox. Here's Why Should You Do It.
Lower interest rates. Period
Lendbox interest rates are far cheaper than credit cards. Companies issuing credit cards are leading banks that have to pay for hundreds of employees, tellers, vaults, collection agents etc. P2P lenders like Lendbox operate completely online which is many times cheaper than running a bank. With minimal operational costs, Lendbox passes on the savings to its borrowers in the form of reduced rates of interest.
Credit cards, in most cases, charge flat interest rates. You are unlikely to enjoy lower rates even if you have a good credit history. Lendbox, on its part, charges the interest you deserve and the repayments are EMI based bringing the overall interest rate every lower.
It's all sweet talk by the salesman when you take a new credit card. You are offered "introductory interest" rates and many other benefits which you will most probably never use. But six months down the line, the rate shoots up and continue doing so at frequent intervals. After about a couple of years, you are outright frustrated and paying way more than you should for your debt.
Interest rates for Lendbox debt consolidation loans never change. It's a stable means of paying off your dues. Check the interest you'll be charged before borrowing. Once you accept the rate, which is also negotiable, it'll remain same all throughout your repayment tenure. Smaller loans, of course, will attract a lower interest. So the interest charged is not only low, it stays low.
Credit card dues usually end up being downwards spiral due to the excessive finance and other charges. Even if you don't use a card for months, the dues soon become overbearing and one feels that you won't ever emerge out of the debt.
But consolidating the loan with Lendbox means there's only a one-way and predictable flow of money. You pay off your dues in EMIs. There's no way your debt and the cost of it increases. It's a fixed-term loan and an easier way to become free from debts.
Rather than paying off several creditors and keeping track of due dates and individual interest rates, it's much easier to pay off a single consolidated Lendbox loan. Your bank account is automatically debited on a particular day each month. Hence, no worry about any missed payments.