According to recent reports presented in the Economic Times, the total credit card usage among Indian households in FY 2018-19 amounted to Rs. 85,300 Crore. With more individuals applying for credit cards, the household debt among Indians is on a gradual rise since the past few years. Thus, to avoid the liabilities that can arise from too much debt, individuals should adopt measures to get rid of their dues as early as possible.
While regular credit card bill payment prevents the accumulation of debt, there might be instances where it can become difficult for individuals to pay off their bills at once. In such cases, one should adopt certain other measures to avoid falling into a debt trap.
How to pay off credit card debts easily?
- 1 How to pay off credit card debts easily?
- 2 1. Convert it into a personal loan –
- 3 2. Opt for balance transfer facility –
- 4 3. Negotiate with your credit card issuer –
- 5 4. Pay off credit card bills with higher interest rate faster –
- 6 5. Make solid repayment plans –
- 7 Pay off more than the minimum amount
- 8 Opt for automatic bill payment option
To pay the debt on your credit card, individuals can follow the ways mentioned below –
1. Convert it into a personal loan –
Various financial institutions offer a facility through which users can convert the unutilised credits on their cards into a personal loan. There are several reasons to opt for personal loan on credit card. The most important of them being that the advance has no end-usage restrictions and can be paid off through three easy EMIs, without interest. The interest is levied only if an individual fails to repay the borrowed amount within 90 days. Through this facility, one can pay off their debt more easily.
2. Opt for balance transfer facility –
By opting for this facility for credit card bill payment individuals can consolidate all the dues on multiple credit cards into a single one. Thereafter, repaying the credit amount due becomes simpler because you will need to make only a single payment each month. For instance, with cards like the Bajaj Finserv RBL Bank SuperCard individuals can avail the Transfer N Pay facility to transfer their balance amount due from one card to another. This will help in paying off the outstanding debt more easily.
Apart from such benefits, Bajaj Finserv also provides pre-approved offers that can make availing credit cards faster and easier. These pre-approved offers are available on various financial products, including credit cards, home loans, personal loans, etc. You can check your pre-approved offer by providing your name and phone number.
3. Negotiate with your credit card issuer –
Individuals can reach out to their credit card issuer to facilitate easy repayment terms on their cards. Sometimes, if your credit card due amount is much higher than usual, financial institutions can provide you with options to reduce your debt effectively.
4. Pay off credit card bills with higher interest rate faster –
While most individuals choose to pay-off credit card online bills with shorter due dates first, it is advisable to pay off the ones that charge higher interest rates, before others. This is because, if you don’t manage to make the payments for these cards on time, your repayment liability will increase rapidly and your debt burden will consequently expand. That is why you should always aim to reduce your credit card interest and save money.
5. Make solid repayment plans –
Strategizing bill payments can allow individuals to kill off debts much faster. Some of the most useful measures that one can undertake include –
Pay off more than the minimum amount
If you pay off more than the minimum due amount or the entire total outstanding amount, you avoid attracting interest on your credit card bills. This helps to reduce the outstanding debt amount to quite an extent.
Opt for automatic bill payment option
Most financial institutions offer the facility of automated credit card bill payments that assist users in making payments on time. To avail this facility, one has to put forth a standing instruction to their issuer for automatic payments each month.
With these options, individuals can ensure that they get rid of their credit card debt on time. But before opting for any of these measures, one should ensure that their card issuer offers these facilities and more. Additionally, they should also check for any additional charges that might be levied to utilise these facilities and to ensure that their repayment liability does not become increase many folds.