Debt consolidation is the process of combining multiple loans or credit card dues into a single loan with one EMI. It simplifies repayment and may reduce your overall interest burden.

In India, debt consolidation is usually done through personal loans, credit card balance transfers, top-up loans, or loans against property. It’s ideal for those handling several EMIs or high-interest debts, especially when missing due dates becomes frequent.

The main benefit of debt consolidation is ease—just one EMI to track. It may also lower interest rates, reduce monthly payments, and improve your credit score if repayments are made on time.

To apply, you’ll need basic documents like PAN, Aadhaar, income proof, and details of the debts to be consolidated. Compare offers from banks, NBFCs, or fintech lenders, and check terms like processing fees and foreclosure charges.

Before opting in, ensure the new loan genuinely reduces your financial burden. Avoid borrowing more than needed and continue timely payments post-consolidation.

Done right, debt consolidation helps you regain control over your finances and build a better credit future.