Credit card Bill: What is the best way to pay off large credit card debt?


The use of credit cards every country is increasing day by day and major banks and other financial companies or offering free credit card to salaried persons without any documents. 

If credit cards are not used properly, it is very easy to fall into the debt trap. Many consumers are unaware that they are using their credit card wisely, spending large sums on unnecessary expenses and eventually falling into the debt trap, which lowers their credit score. 

As a result, they lose the opportunity to get loans in the future. Below are some of the options you need to follow to overcome credit card debt and improve your credit score / CBIL score. Check credit score online free: How to Improve Your Credit Score?

struggling to pay credit card bills

Postpone your investment and pay off your credit card bill

Most people do not pay off their credit card debt and defer from time to time. But at the same time there will be money in their bank account or in fixed deposits. This does not mean withdrawing all the money in their bank account or FDs (Fixed Deposits) completely and paying for the credit card bill instead of struggling to pay credit card bills

Postpone your current investment and use the money to pay off your credit card bill and learn the art of paying credit card bill very easily.

Pay off credit card debt in five to six parts or installments

Most customers pay the credit card minimum balance i.e minimum due amount to avoid penalties and leave the balance unpaid. Doing so will only save you from fines. But interest is payable on the remaining amount. This will keep you from getting out of debt forever.

So in addition to you paying the minimum balance amount, pay 3 to 4 times the maximum amount each month for the minimum balance. For example, your credit card loan is Rs.2 lakhs, the minimum amount to be paid is Rs. 10,000. 

struggling to pay credit card bills

Then try to pay at least three to four times more of that amount, i.e. Rs. 30,000 or Rs. 40,000. If that doesn't work, pay at least 20,000. If you pay this way regularly, you can pay the full balance over a one-year period.

Pay off credit card bills without borrowing from friends or family

Borrow some money from your friends or family and try to pay off the credit card bill at once, then add interest to them and repay. If you have explained your problem to a friend or family member, you can get an interest free loan from them. However, be sure to repay them within the time you specified.

Take out a personal loan to pay off a credit card bill

If you can not get a loan from family or friends, then apply for a personal loan and use the proceeds to pay off your credit card balance. Personal loan interest rates range from about 14 to 18 percent. But it is better than interest paid on credit card balance. 

struggling to pay credit card bills

The interest rate usually charged on a credit card balance is 40 percent per year. If you already have a home loan, apply for a top-up loan. It is much cheaper than personal loan interest.

Change your credit card balance to EMI

If you can not get a personal loan, you can change the balance to EMI option. Almost all major banks offer the option of converting credit card balances into EMIs of 3, 6, 9, 12, 24 months. The interest rate is between 13 and 18 per cent depending on the bank.

Use Credit Card Balance Transfer Facility

Many credit card companies also offer a facility called Balance Transfer. This facility makes credit holder to transfer one credit balance money to another credit card account. It also offers some benefits such as a 3 month interest free term or low interest rates for the first few months. 

Almost all major banks like SBI, ICICI Bank, HSBC offer credit card balance transfer facility. However, before choosing this option, check if there is any processing fee for it.

Apply for Credit card loan know taking Credit card loan Safe or Not

Personal loans offer borrowed funds in an initial lump sum with relatively low interest rates; must be repaid over a limited time. Credit cards are a type of revolving credit that allows the borrower to access funds as long as the account remains current.

Here are some things you need to know if you are taking or wanting a credit card based loan or searching fro credit card loan apply online, most banks usually offer top-up loans on credit cards. 

To get this type of loan for your personal or any other reason, the basic eligibility of the credit card holder must have a good credit score. There are number of websites available online or banks provide Credit score report free download or few of them charge nominal fees for generate credit score online.  

If you have already taken a loan on any credit card or applied loan on credit card, then do not forget or delay the monthly payments related to it. 

struggling to pay credit card bills

 If payments are delayed credit card loan bad credit can have a negative impact on the top-up loan opportunities you may want to take out in the future.

In any reason if you failed to repay loan on a credit card can have a devastating effect on their credit score. 

Credit card defaults can also have a negative effect on credit score. In the case of defaulter effect there is a difference between credit card payments and loan payments.

Credit loans are available with various maturity options. The customer can choose the loan repayment period. Available for a maximum of 24 months. Some banks also offer a maturity of more than 24 months.

Use your credit card wisely - How to use credit card without paying interest

The following are some tips to help you avoid falling into the credit card debt trap.

  1. Try to pay or make a practice to pay your credit card bill 3 days before the due date.
  2. Try to avoid or money control unnecessary credit card transaction 
  3. Check regularly Bank offers to Earn money through credit card - Do not miss the opportunity
  4. Do not transact credit card online or for offline shopping more than what you can afford.
  5. Start personal financial planning to reduce unnecessary expenses
  6. Use a debit card instead of a credit card. Then you only pay for what you need.
  7. Most banks offers for increase credit limit if you really worth it give confirmation or else try to avoid it.
  8. It is not advisable to have a high credit limit.

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