Consolidate your amount overdue and decrease your EMI Burden: Finheal

Buying a house, car and consumer durables are much easier than previous to now, given the flexibility in getting loans for all under the sun. When blessed with such opportunities around, people are tempted to fulfill every requirement without the wait. Equated monthly installments (EMIs) have positively started to govern people's lives now.rnBuying the whole thing, originally, feels very good. But when the pressure of EMIs and interests outage begins to pinch, these loans become worrisome. Moreover, managing all the loans is no less than a challenge. When there is already so much to take care of, keeping a track of EMI and loan installment timelines can sometimes get on the nerves. Loans and EMIs can easily get peace out of your life, if not managed properly. They need a careful watch, so that you do not incur additional cash penalties, on account of not honoring the commitments in time.rnWhile it is not always advisable to not take numerous loans in one go, and be careful in opting for loans only for things which are totally essential, you can take multiple loans on condition that you service them with dexterity. If you are running multiple loans from a variety of sources, there is a chance for you to consolidate all his loans with one financier. This move would help you administrate your loan exposure much more with no trouble, as you would have to service only one installment, instead of servicing multiple installments. rnBut the biggest advantage of the consolidation of all loans is that, the overall EMI burden really comes down, when different loans with multiple financiers are brought under one financier.rnHow does this occur? This occurs because, when you do the balance transfer of different loans to consolidate your money owing, you always do it for a lower average yield. The lower average yield on your joint exposure, gives you incredible savings on the future interest payments that you would be making on all your existing loans put together.rnFor example, if you had one loan of Rs 6 lakhs at 15% for 3 years and another loan of Rs 4 lakhs at 12% for 15 years, the total monthly installment that you would be servicing would be Rs. 25,599.87. But if after running 1 year on the first loan and 3 years on the second loan, you get both the loans transferred together to a single financier and get it structured at 10.15% for 60 months, the combined EMI would work out to be Rs.12, 792.56. Thus, you get to reduce the total tenure exposure as also the EMI. What is happening here is that the high EMI burden of the first loan gets spread over a longer tenure. This helps in overall decrease of the EMI. Besides, over the complete tenure of the loan, you also get to save on the total interest out. In the above example, the saving on the interest outage due to debt consolidation would be less than the previous one. Sure, you shouldn't overlook it.