What Is Debt Management? Tips To Lower Your Debt

Debt management is a strategic financial plan that helps individuals repay their debt in a structured and manageable way. It involves assessing your financial situation, creating a budget, and negotiating with creditors to lower your interest rates or reduce the total amount owed. This process can be simplified with the help of certain financial tools and services, such as obtaining a personal loan with a flexible EMI and tenure plan. 

What is Debt Management?

Debt management is an approach designed to help individuals deal with substantial debt. This process involves creating a structured payment plan that allows debtors to repay their debts in a manageable way. The main goal is to reduce or eliminate debt in a systematic manner, enabling the borrower to regain control over their financial situation.

Personal Loans and Debt Management 

A personal loan can be an effective tool in debt management, especially when it comes with flexible EMI and tenure plans. For example, Airtel Finance offers personal loans up to 9 Lacs with flexible repayment options. Both Airtel and Non-Airtel users can apply for a personal loan within minutes on the Airtel Thanks app.

Also Read- Detailed Personal loan verification – Overview and Process

Key Documents Required to Apply for a Personal Loan

The Airtel Personal Loan requires minimal documentation for processing a personal loan. Following are the documents required for personal loan by the applicant:

• PAN Card
• Aadhaar Card

Other than this, documents needed for personal loan vary on a case-to-case basis. Generally, a personal loan application requires the following additional personal loan documents:

• Salary Slip of last 3 months (For Salaried employees)
• Bank Statement of last 3-6 months
• Proof of Income and Income Tax Returns (For Self-employed individuals)
• Official Mail ID
• Address Proof and others.

Applying for a loan is simple. Users need to enter their personal information, employment details, and the loan amount they wish to borrow. The app then presents the best personal loan offers from various NBFCs according to the user’s credit history and score. Users can choose the offer that fits their needs, adjust the loan amount, choose EMI, and loan tenure, and provide relevant documents, if needed, to process the application. If approved, the loan amount will be disbursed instantly.

Also Read- How to check the monthly EMI on a Personal Loan before applying?

Tips To Lower Your Debt

Create a Budget: This is the first step in any debt management plan. By understanding your income and expenses, you can create a budget that allocates funds towards debt repayment.

Prioritize Your Debts: Pay off your high-interest debts first as they cost you the most money.

Consolidate your Debts: Using a personal loan to consolidate multiple smaller debts can make repayment more manageable and potentially lower your overall interest rate.

Negotiate with Creditors: Many creditors are willing to negotiate lower interest rates or payment plans if you show a commitment to repay your debt.

Seek Professional Help: If you’re struggling to manage your debt on your own, consider seeking help from a debt management company or a financial advisor.

Conclusion

Debt management is an essential aspect of financial planning. It helps individuals regain control over their financial situation and reduce or eliminate their debt. Airtel Finance’s personal loan with flexible EMI and tenure plans can be a valuable tool in an individual’s debt management strategy, enabling them to consolidate their debts and manage repayments in a structured way.

Also Read- 5 Things You Should Not Do With Your Personal Loan

FAQs

What is Debt Management? 

Debt management is a strategy that helps individuals repay their debt in a structured and manageable way.

How can a personal loan help in debt management? 

A personal loan can consolidate multiple smaller debts into one, making repayment more manageable and potentially lowering the overall interest rate.

How can I apply for a personal loan on the Airtel Thanks app? 

Enter your personal information, employment details, and the loan amount you wish to borrow. The app will present the best personal loan offers according to your credit history and score.

What is the maximum loan amount I can apply for on the Airtel Thanks app? 

You can apply for a personal loan online of up to ₹9 Lacs using the Airtel Thanks app.

When will the loan amount be disbursed? 

If approved, the loan amount will be disbursed instantly.