If you are one of the several people who have a credit card and many who0 are stuck in credit debt, this is especially for you. Spending more money on items you don’t truly need has never been good. Splurging is not good, it is an easy way to land in debt. Once you get into debt, it takes a lot of time and effort to get out of debt. You have to pay interest rates and EMI’s. In case you are struggling with credit debt. Here is how to use your credit card wisely and stay away from more debt. India’s First Free Online Financial Advisory Moneymindz.
1. Pay the credit card outstanding amount regularly
On any credit card, you have to pay the monthly fees and also pay the amount of debt you owe. Paying all the fees on time will not result in added interest and late fees. So the first thing you have to do is to maintain discipline and punctuality in paying all related fees on time.
2. Stop making new purchases frequently
Today, we are all victims of instant gratification, greed for more and lack of patience. We see advertisements everywhere, have easy access to money and end up spending lump sums only to regret that later (some intellectuals don’t even realize they are wasting their money!) This is why most of us have moiré debt and fewer savings. It’s time we reverse this trend like it was in the past, less debt and more savings. India’s First Free On call Financial Advisory Moneymindz
3. Opt for transfer balance facility
If you aren’t able to pay the balance in full each month, you have to go for ‘balance transfer’ (BT) facility and this is feasible only if you have two credit cards. The card limits up to the amount availed as BT gets blocked once the facility is used. Using this, you can transfer the outstanding amount to another card at a reduced rate of interest. But you still have to repay the balance in full. Transferring balances frequently will negatively impact your credit score.
4. Convert to EMI
If you cannot pay off the amount entirely, you have the option to convert it into EMI payments as they come at a lower rate of interest. There are two types of EMI’s offered usually, merchant EMIs and EMIs on call. Merchant EMIs mean the EMIs offered by the merchant when you buy a product using your credit card. EMIs on call mean EMI options on certain high ticket purchases you make. Kuber Mindz, Smart Financial Advisor
5. Repay at the earliest
When you use a credit card, ensure you repay the amount at the earliest. Don’t keep the amount pending. Doing so will add interest and make it difficult for you. This is the simplest point to understand but many find this the hardest when it comes to practice.
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