Credit Card: In today's time, credit card is becoming a necessity for people. Its use has increased rapidly in recent times. But while a credit card can be helpful to you at times, even a small mistake can cause trouble for you. If you are unable to repay the credit card bill on time, the debt burden can increase rapidly since credit card companies charge more interest as penalty for not paying the bill on time.
Not only this, increasing the burden of credit card debt can affect your credit rating. To avoid this situation, know here the ways to avoid credit card debt.
Reduce credit card balance
Always keep the credit card balance low so that the interest you pay on the credit card can be reduced.
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This will also save you money every month.
You should not wait for the end of the month to make the payment because the higher the outstanding balance, the more interest you will have to pay.
By paying this amount regularly, you can reduce the outstanding balance.
If you owe, pay it off early
In most credit cards, it is necessary to pay 5 per cent every of bill month and after this, the remaining balance is included in the next month's bill and interest continues to be charged on it.
Although 4 per cent interest is charged on this, it can also make you burdened with debt. Repay it as soon as possible and avoid debt.
Shop through EMI
Many times, if we buy any big item, we pay for it through the credit card only, but due to this, the total interest charged on the card can be very high.
In such a situation, you can convert that payment into EMI by choosing EMI facility from your credit card company, due to which, the interest charged on purchases can be reduced.
Transfer credit card balance in one place
If you have a card with low interest rate, then transfer the balance of your first card to the second card, but before that, you need to know about the processing fees and other charges, and also transfer all the balance at one place.
You should do this when you are not able to pay the balance of a card.
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October 22, 2023 at 10:12AM
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Credit Card: Burdened with credit card debt? Follow these ways to avoid it - Zee Business
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