For instance, if Megha has the following existing debts running:

She has 4 personal loans and 3 credit card’s outstanding. The loan amounts for both categories are mentioned in the tables. Now, Megha has 7 existing debts for which she has to pay 7 EMIs per month.

Sn. No.	Loan Amount	Existing ROI	Existing EMI	Current Outstanding Loan Amt
Loan 1	1,50,000	18%	₹ 3,809	1,25,000
Loan 2	3,00,000	16%	₹ 7,295	2,25,000
Loan 3	5,00,000	14%	₹ 11,634	3,50,000
Loan 4	7,00,000	12%	₹ 15,571	4,50,000
Total	16,50,000	-	₹ 38,310	11,50,000

For 4 loans other than credit card outstanding, she has to pay a monthly EMI of ₹38,310. Secondly, she also has to pay back the credit card's outstanding balance of ₹ 3,50,000 as below.

Sn. No.	Credit Card Outstanding	Existing ROI	Existing EMI	Outstanding Amt to Repay
Credit Card 1	50,000	36%	-	50,000
Credit Card 2	1,00,000	36%	-	1,00,000
Credit Card 3	2,00,000	36%	-	2,00,000
Total Amount	3,50,000	-	-	3,50,000

What if she could bring down the EMI to just 28,937/month?

If Megha applies for a personal loan debt consolidation, then she can cut down her existing EMIs by 42% and has to pay just a Single EMI as below.

New Debt Consolidation Loan

Outstanding Loan Amount	11,50,000
New ROI	11.50%
New Tenure	6 years
New EMI	₹22,185
EMI Saving	42%

New Debt Consolidation Loan

Outstanding Credit Card Amount	3,50,000
New ROI	11.50%
New Tenure	6 years
New EMI	6,752

With an EMI of Rs. 28,937/month for 6 years as against Rs. 38,310 current EMI and Rs. 3,50,000 Credit card Outstanding dues, Megha will have more time to repay the loan and that too at a lower rate of interest and lower EMI burden by 42% with a relaxed mindset, helping her increase her credit score as well.

The repayment period for personal loan Debt Consolidation ranges between 2 and 7 years. Depending on the applicant’s financial records and credit score, the annual percentage rate (APR) can vary from 10.50% to 17%.