4 Simple hacks for debt consolidation for investors

20 December, 2017

Debt consolidation is a form of debt refinancing which enables a certain debtor to pay off all its liabilities through only one liability. This is also termed as paying many loans through one loan, hence making it a high consumer debt product as also making it a corporate debt product or Government debt product for a country’s fiscal policy.

Here are four simple hacks or ways which shall provide debt consolidation ways or options for investors:

  1. Debt consolidation is not for everyone

Debt consolidation may not suit each and every investor in financial distress. Hence for some investors, it might mean paying lower interest rates and instalments in the long term, whereas, for other investors, debt consolidation shall last for a short period as chances of repaying the debt may be low.

Hence debt consolidation ways may vary from investor to investor.


  1. Consulting the credit provider

The next option in consideration shall be consulting the credit provider and discussing ways in which the repayments can be organized such that the debt of an investor is consolidated.

Even if a certain investor may have problems of repayment, the investor needs to discuss on structuring out and solving its problem


  1. Home loan changing

Just as a change in the home loan can be beneficial for an investor as it pays lower interest rates, credit providers may also act to make a benefit by charging an exit load or exit fees to exit or leave from the existing loan.


  1. Mortgaging or selling the home

The next hack is to mortgage or eventually sell the home for consolidating the debts.

Mortgaging the house or the home can be used when the investor is financially able to repay the mortgage and not end up losing its home or house in the process of debt consolidation.

Whereas selling of the house or home would be the most convenient option, wherein the investor has enough money to repay its existing debts and still settle in a new home whether rented or owned. This option shall save the investor from ruining its CIBIL score by letting the credit provider sell the property at a mortgage sale.

Some of the other ways to consolidate the debt are-

  • Reaching to the financial counsellor such that an investor gets clarity in sorting out personal finances as well as finances with the credit provider.
  • Also reaching out to the Ombudsman of the certain Credit Providing Company if the investor is unhappy with the services provided by the credit provider with regard to debt consolidation.
  • Checking the loan term before investing or taking up credit from the credit provider is necessary.
  • One of the important factors is to check if the credit providers are licensed and not fraudulent, such that the credit providing companies do not cheat the investors and get away with their illegal activities.