There is no clever trick that makes debt disappear. There are five methods that work, and choosing between them depends on whether you need the fastest saving or the earliest win.
1. Attack the highest rate first (avalanche)
Pay minimums everywhere, put every spare rupee against the most expensive debt. Mathematically this always saves the most, because a credit card at 36% costs three times what a personal loan at 12% does.
2. Or clear the smallest balance first (snowball)
Costs slightly more in interest, but closing an account produces momentum that keeps people going. A method you stick to beats an optimal one you abandon.
3. Consolidate expensive debt into one cheaper loan
Four cards and two personal loans at 16–36% can often be refinanced against property at around 10%, or into a single personal loan at 12–14%. One EMI, one date, materially less interest. The condition: do not refill the cards afterwards.
4. Keep the tenure when you refinance
The trap in every consolidation. Moving 15 remaining years into a fresh 20-year loan lowers the EMI and raises total interest. Keep the tenure and bank the saving.
5. Ask your existing lender before you move
Many banks run an internal rate conversion for a small fee, no new paperwork. Walk in with a competing sanction letter. Losing a performing loan costs them more than the discount does.
What not to do
Do not settle an account if you can avoid it. A “settled” status damages your report far more than a few months of late payments, and it stays for years. Pay in full and get written confirmation.
See when a balance transfer is worth it, or send us your current EMIs and we will work out whether consolidation helps.
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