The increase in the credit card’s usage and demand across India has been significant in recent years. According to the Reserve Bank of India, between May 2019 and April 2020, India added around 9.4 million credit cards to its financial market.
Credit card, as a financial product, offers a host of benefits to its users. However, if not used properly, it can leave a significant effect on an individual’s finances. Therefore, before making a credit card application online, you should know the options to quickly repay any credit card debt that you may have.
6 ways to remove credit card debt
1. Curate a plan
If you have not planned your credit card usage, then you must plan your repayment carefully. Having an organised system in place is always helpful to tackle debt. Initially, you can get all the information of your existing debt noted down in one place. It includes the total due amount, payment due date, and the minimum amount due. Doing so will help you to be aware of your payments and stay up to date on the credit card bill.
2. Eliminate the ones with a high interest rate
Every credit card carries a different interest rate, and if you are dealing with more than one, then pay off the ones with a high interest rate. It will lower the overall outstanding debt. However it would be suggested that you should choose a credit card checking first so that organisation is offering how much interest rates for their credit card.
3. Convert it into EMIs
Making a credit card application online may not be a time-consuming affair, but repaying its due can take a lot of time. Thus, an easier way to handle credit card debt is by converting it into EMIs. It makes repayments easier and more structured. The financial institution may charge you a minimal processing fee to convert the total debt into EMIs.
4. Pay more than the minimum amount
Once you pay the minimum amount, it may reduce your credit card interest and save money, but it does not reduce your overall debt. Hence, it is not an ideal way to get rid of your credit card debt.
Instead, you can pay more than the minimum amount every month. It will not only stop the interest occurring on your outstanding but also start to clear off your debt.
5. Auto payment facility can help
In case you have failed to submit the credit card dues within the stipulated time, it will accrue high interest on the outstanding. To avoid any such situation, you can opt for automatic credit card bill payment. In this way, the due amount will be deducted from your account, and you will not miss the payment deadline date.
6. Limit number of credit cards
If you are looking for ways on how to increase credit card limit, you are likely to receive offers for new credit cards. Such offers may be lucrative, but you should keep in mind that using multiple credit cards can increase the risk of incurring significant debt. Hence, it is better to limit the number of credit cards you use and manage them efficiently.
Managing a credit card debt ultimately resides with its user. These are some popular methods of dealing with them, as suggested by various experts. You can take cues from them to tackle your credit card debts.
Nevertheless, if you are planning to avail a feature-loaded credit card with benefits like 50days interest-free ATM cash withdrawal, emergency loan, affordable interest rate, etc. you can opt for Bajaj Finserv RBL Bank SuperCard.
Along with such benefits, the company also provides pre-approved offers on its credit card and several other financial products. This offer is also applicable to financial products like business loans, personal loans, etc. This offer aims to streamline the application process and save time. You can quickly check your pre-approved offers by submitting your essential contact details.
The emergence of credit cards has indicated a shift in the usage of payment cards in India. This country is primarily known as a debit card country and is now going through a change. However, credit card applications online, you should read its terms and conditions, and be financially prepared to manage its repayment. Otherwise, it can leave a significant dent on your credit score.