How Debt Consolidation Works
Credit card debt often carries astronomical interest rates between 36% and 42% APR. If you have multiple cards maxed out, you are likely paying thousands of rupees every month purely in interest, barely reducing your actual debt balance.
Debt consolidation means taking a single Personal Loan (typically available at 10.5% - 15% APR) to instantly pay off all your credit cards. You then only have one manageable EMI to pay every month at a much lower interest rate.
Warning: Debt consolidation only works if you change your spending habits. If you consolidate your debt into a personal loan, but then max out your newly cleared credit cards again, you will be trapped in a debt spiral twice as deep.