Estimated reading time: 5 minutes
Ways to pay off your credit card debt faster
Credit cards act as a solution to most of your purchases and problems. With the advent of a wide range of credit cards offered by major banks, you can pay for anything and everything with your cards, even groceries.
These credit cards are a solution, yes, but only when used smartly. If you hand over a credit card and you go on a shopping spree, it’s not spending wisely. Your card becomes an obligation to pay a large bill at the end of the month.
Credit card bills being added on a monthly basis and unable to pay in full has become a common practice for most of people these days. Due to this, every month, your bill gets added to the previous months resulting in huge debt repayment.
This is what happens when you have a credit card. If you hold more than one, if you don’t spend wisely, you have many debts on you that affect your monthly budget as well as your credit report.
Credit card debt cycle is a real term for where you can spend more with a credit card. This leads to a huge credit card bill, probably more than your budget. In return, it borrows money in the form of loans to repay these debts. Hence, a circle.
7 Ways You Can Pay Off Your Credit Card Debt
Make a note of all debts to be paid
Instead of looking at your credit card bill all at once, which is too high, break it down into smaller parts. It helps you classify it. If you have more than one credit card, it is advisable to pay the bill on priority basis.
Now how do you differentiate which bill needs to be paid first? It depends on two parameters which are the interest rate of the card and outstanding bills.
For example if you have only one credit card and the total bill is Rs 20,000. If you divide it into 4 it is a better strategy. It becomes easy if you look and know that you have to pay Rs 5,000 instead of Rs 20,000 in total.
Honeymoon: How to have a romantic gateway with your partner
Preference
It is advisable that you pay the credit card bill on which the interest rate is higher and not the credit card bill of higher amount. This will save you from paying a large amount due to accumulated interest in the coming months.
If you think paying only the minimum due amount helps you to set it aside for a while, think again as it can affect your credit report and score. Banks will monitor your activity and may suspend your credit card if they see that you are spending recklessly.
Pay card bills with minimum balance
Once you have paid off the credit card bill with a higher interest rate, you can switch to a card with a lower balance.
It totally depends on which bills have been deposited and on which card. This may not always happen. Sometimes, the card that has the lowest bill may be held by the card that has the highest balance. So you are clearing two important Bills.
Once you clear the credit card with the highest interest, you can shift to the credit card with the lowest outstanding balance. Paying it off gives you the much-needed mental boost to pay off the rest of the bills.
In India, there is no credit card like the United States that has an annual percentage rate of 0%. These cards are used for credit card balance transfer. During the period of 0% interest, the cardholder can pay all pending bills.However, there are cards that offer lower interest rates than other cards.
In this case, you can hold two credit cards, transferring the balance from the credit card with the higher interest rate to the credit card with the lower interest rate. In this way, you save a large part of the money on interest.
Taking out a loan to pay off credit card debt
If your credit card bills are too high to pay in installments, there is another option by which you can pay it in one go.
If you have a good credit score, you can apply for a personal loan to pay off all your credit card bills at once. This way, you can become debt free and pay less interest. Personal loan interest rates are lower than credit card interest rates. Also, depending on the tenure, your monthly EMI will also be a nominal amount.
Convert outstanding bill into EMI
If nothing else, you can always visit your bank branch and request for conversion of your outstanding credit card bill into EMI.
Most of the banks charge a nominal interest rate for these EMIs with the option of a specified tenure. These EMIs can be deposited directly into the bank branch with a check or can be deducted directly from your account with the bank’s automatic payment facility.
Latest Stories
Welcome to the world of warm water, where a simple habit can revolutionize your health and well-being. In this comprehensive guide, we delve into the myriad benefits of drinking warm water, backed by…
Click here to Read more
In a significant development for the Indian Navy, Vice Admiral Dinesh Kumar Tripathi, PVSM, AVSM, NM, currently serving as the Vice Chief of the Naval Staff, has been appointed as the next Chief…
Click here to Read more
The India Meteorological Department (IMD) has issued a crucial warning regarding the likelihood of heat wave conditions in isolated pockets of Jharkhand and Bihar from April 19th to 22nd and April 20th to…
Click here to Read more
After a hiatus of four years, acclaimed filmmaker Anurag Basu is all geared up to mark his directorial comeback with his latest venture, "Metro In Dino." Initially announced back in December 2022, the…
Click here to Read more
Chhattisgarh Chief Minister Vishnu Deo Sai expresses concern over a soldier's injury in a UBGL blast that occurred in Bijapur amid the ongoing polling for the Bastar Lok Sabha constituency. "Saddened by the…
Click here to Read more
Farah Khan, the renowned Bollywood director, never fails to extend her warm hospitality to her friends, often transforming her home into a hub of joy and music. Once again, the merriment reached its…
Click here to Read more
Yogi Babu: The first phase of the Lok Sabha elections kicks off today, marking the beginning of a crucial democratic process in India. Tamil Nadu stands among the initial states to partake in…
Click here to Read more
The India Meteorological Department (IMD) has issued a crucial warning regarding severe heat wave conditions anticipated in isolated pockets of Gangetic West Bengal from April 19th to 23rd, 2024. According to the IMD's…
Click here to Read more
"Madgaon Express," a mid-sized film without big stars, is on the brink of crossing the ₹30 crore milestone, signaling a notable achievement. Despite lacking major stars, its consistent performance at the box office…
Click here to Read more
N. Biren Singh, Chief Minister of Manipur, sets an example of civic responsibility by casting his vote in the Lok Sabha Election 2024. "I've cast my vote in the Lok Sabha Election 2024.…
Click here to Read more
The comedy-drama film "Laapataa Ladies," directed by Kiran Rao, has crossed a significant milestone, completing 50 days in cinemas. Audiences continue to flock to theaters as the movie extends its successful run into…
Click here to Read more
Attention students! IIT Dharwad is thrilled to announce the commencement of its Summer Internship Program, inviting applications from aspiring individuals eager to explore and excel in their chosen fields. This program offers a…
Click here to Read more
Actress Chetna Singh, known for her role in the popular TV show "Udaariyaan," tied the knot, on April 18, 2024, in a grand ceremony. The wedding festivities spanned over a week, culminating in…
Click here to Read more
A mother has filed a lawsuit after discovering that her son's elementary school teacher, Julius Johnican, allegedly organized a fight club within the classroom, involving 7-year-old students. In shocking footage, a student can…
Click here to Read more
Anurag Basu's highly anticipated film 'Metro In Dino' has rescheduled its release to November 29, 2024, offering fans a fresh date to mark on their calendars. Star-Studded Cast: The film boasts a stellar…
Click here to Read more
Union Minister Nitin Gadkari fulfilled his civic responsibility today as he cast his vote alongside his family at Nagpur's Town Hall during the first phase of Lok Sabha elections 2024. Nitin Gadkari's participation…
Click here to Read more
The much-awaited film "Luv You Shankar" released today in cinemas across Hindi, Tamil, Telugu, and Kannada languages, offering a diverse cinematic experience to audiences. Certification and Duration: The Hindi version of the film…
Click here to Read more
Arunachal Pradesh Chief Minister Pema Khandu revisited his roots as he cast his vote at Government Secondary School, Bomba, the very institution where he received his education. "Delighted to exercise my voting right…
Click here to Read more
The much-anticipated romantic comedy film "Do Aur Do Pyaar" has been released in theaters today, April 19. Directed by Shirsha Guha Thakurta, the movie promises to deliver a delightful blend of romance and…
Click here to Read more
Meghalaya Chief Minister Conrad K Sangma underscores the significance of voting as a fundamental right and civic duty, urging citizens to exercise their franchise in the democratic process. "Exercise your right to vote…
Click here to Read more
As Nysa Devgan, daughter of Kajol and Ajay Devgn, prepares to celebrate her 21st birthday on April 20, her mother took a moment to reflect on their journey together. Kajol poured her heart…
Click here to Read more
Uttarakhand Chief Minister Pushkar Singh Dhami leads by example as he fulfills his civic duty by casting his vote at the Nagara Terai polling station in Khatima during the Lok Sabha Elections. "Secured…
Click here to Read more
On KL Rahul's birthday, Athiya Shetty poured her heart out with love and positive wishes for her husband. The actor took to Instagram to share two intimate and unseen photos with him, offering…
Click here to Read more
Bollywood's powerhouse Ranveer Singh found his match in director Atlee, who ignited the dance floor with their high-octane moves. The duo stole the spotlight at director S Shankar's daughter's wedding, captivating fans with…
Click here to Read more
Lok Sabha Elections: Uttarakhand Chief Minister Pushkar Singh Dhami observed a sacred ritual before participating in the democratic process of voting in the Lok Sabha Elections. "Today, before casting his vote in the…
Click here to Read more
Lok Sabha Elections: Union Home Minister Amit Shah has issued a heartfelt appeal to the voters of Bihar as the state gears up for the first phase of Lok Sabha elections in 4…
Click here to Read more
Masaba Gupta and Satyadeep Misra Expecting Their First Child: Fashion designer-actor Masaba Gupta and Satyadeep Misra are excited to announce their pregnancy journey. In an Instagram post on Thursday evening, the couple shared…
Click here to Read more
Director Shankar's daughter, Aishwarya Shankar, tied the knot with Tarun Karthikeyan in Chennai on April 15. The wedding was graced by celebrities such as Vikram, Suriya, Nayanthara, Chiranjeevi, Ram Charan, Ranveer Singh, and…
Click here to Read more
Nitin Gadkari, Union Minister, has called upon the citizens of Nagpur as India commences the first phase of Lok Sabha Elections 2024, the world's largest democracy. "Voting is taking place today in the…
Click here to Read more
Vivo has expanded its smartphone lineup in India with the launch of the Vivo T3x V2338, offering consumers a range of features at competitive price points. The Vivo T3x V2338 comes in two…
Click here to Read more
World Liver Day, observed annually on April 19th, serves as a global platform to raise awareness about the importance of liver health and the prevention of liver diseases. The liver plays a vital…
Click here to Read more
Arunachal Pradesh Chief Minister Pema Khandu has issued a fervent appeal to the electorate as the state gears up for the eighth State Legislative Assembly and 18th Lok Sabha elections. "As Arunachal Pradesh…
Click here to Read more
JP Nadda, President of the Bharatiya Janata Party (BJP), has appealed to citizens across the nation as the first phase of the Lok Sabha Election 2024 commences, covering 102 constituencies. Addressing the electorate,…
Click here to Read more
Amit Shah, India's Home Minister, has delivered a compelling message to voters as the nation embarks on the first phase of elections. In his address, Shah emphasized the significance of this electoral process,…
Click here to Read more
In a move that has drawn criticism from both within and outside the company, Google recently made headlines for firing 28 employees who participated in a pro-Palestine protest. The demonstration, which took place…
Click here to Read more
Aries (March 21 - April 19) As the first sign of the zodiac, Aries embodies leadership and vitality. On April 19th, 2024, Arians may feel a surge of energy and motivation. It's a…
Click here to Read more
As the Lok Sabha Election commences, CM Yogi Adityanath extends a heartfelt appeal to all eligible voters. Describing it as the "great festival of democracy," CM Yogi emphasizes the pivotal role of voters…
Click here to Read more
Prime Minister Narendra Modi has issued a rallying call to citizens as the 2024 Lok Sabha elections commence today. With 102 parliamentary seats spread across 21 States and Union Territories going to the…
Click here to Read more
As India braces for a diverse range of weather phenomena, it's crucial to stay updated on the latest forecast and warnings issued by meteorological authorities. Here's a breakdown of the current weather systems…
Click here to Read more
Lok Sabha Elections 2024: As India prepares for the 18th Lok Sabha and Legislative Assembly elections across four states, the Election Commission of India (ECI) is primed to oversee the biggest festival of…
Click here to Read more
Mathura Road: Commuters in Delhi are urged to exercise caution and plan their routes accordingly as a car breakdown on Mathura Road near Sarita Vihar Metro station is likely to cause traffic disruptions.…
Click here to Read more
In a significant development, PepsiCo has swiftly brought its Gorakhpur plant to fruition, less than a year after Chief Minister Yogi Adityanath laid its foundation. This monumental accomplishment marks the largest investment by…
Click here to Read more