ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • IRDAI sets a target of 5 years for life insurance companies for greater penetration; proposes state-level committee
  • Dalal Street Corner: Bank, FMCG stocks help Nifty clear crucial hurdle of 15,800; what should investors do on Tuesday?
  • Despite windfall tax, brokerages remain bullish on oil & gas stocks; see up to 70% upside on ONGC, Oil India
  • Rupee settles flat at 78.94 against US dollar
  • Akasa Air showcases crew uniform; conducts proving flight test
Read in App
Business News » Personal Finance News

Credit card dues payment: How to get rid of credit card debt fast?

If credit card payments not done in time, there are a host of charges you will be eligible for, which makes your repayment even more burdensome.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Credit card dues payment: How to get rid of credit card debt fast?
Representational Image: Photo: Pixabay

Credit cards have become a very useful tool especially when there is a need for financial aid in an emergency. They were tough to secure once, but times have changed, and now getting one has become very easy. Earlier, there was a list of factors like how much you earn, or how much is your capacity to repay, your details with other loans, etc. would be taken into consideration. But now, almost every bank is offering you a credit card even with a salary of Rs 15,000 - Rs 20,000. Many times, the moment you open your salary bank account, you are given the option to even avail a credit card. 

However, considering the demand for credit card and usage rising further, it also brings the question of how to repay that debt you owe your bank using this tool.

If credit card payments not done in time, there are a host of charges you will be eligible for, which makes your repayment even more burdensome.

Ranjit Punja CEO and Co-Founder, CreditMantri said, "With the increasing push on digital transactions, credit card usage in India is increasing day by day. While credit cards are extremely convenient and their importance is evident, credit card debt is something that is taken for granted."

In Punja's view, unpaid credit card outstanding amounts carry the highest rate of interest which can range anywhere between 24-48% per annum. Paying such exorbitant rates of interest on any debt will undoubtedly take a toll on the financial health of an individual.

While avoiding such debt is the best way to go about, a few of us may have erred and ended up with credit card debt. There is no need to panic though, for there are simple ways through which you can clear your credit card debt faster.

Let's find out how you can repay your credit card debts faster, as per CreditMantri. 

#ZBizSpecial | #MakarSankranti के मौके पर डिम्पी कालरा से जानिए कमाई का गोल्ड शेयर।@AnilSinghviZEE @dkalra81 pic.twitter.com/28pv6YpHHP

— Zee Business (@ZeeBusiness) January 14, 2019

Pay Attention To Your Credit Card Statement: 

If you are getting into credit card debt, it clearly means that you are spending more than what you can afford to pay. So, pull out a couple of your credit card statements and analyze your spends. It will also help you monitor unauthorized transactions and usage patterns of add-on cardholders if any.
Should you have more than one credit card, it might be time that you took stock of the usage on each of them and close some if you feel they are the cause of overspending.

Pay Off Debt With Highest Rate Of Interest First: 

When it comes to debt, it is always ideal to pay off the one with the highest rate of interest first. 
So, if you are facing problems paying your credit card debt and some other debt, you should focus your attention towards credit card debt first, so that you can be saved from paying huge amounts of interest.

Use Debt Consolidation Loans: 

If you are faced with paying too many loans/debts, you may find yourself missing out on EMI's or losing track of your repayment schedule. In cases like these, you could approach your lender for a debt consolidation loan. You could use a debt consolidation loan to consolidate all your loan accounts under a single loan account. 

However, bear in mind that secured loans like home loans or vehicle loans cannot be consolidated.

In extreme conditions, you could avail a personal loan to pay off your credit card debt. However, this should be used only as a last option. Availing debt to clear another debt is a bad idea!

Consider Balance Transfer: 

Many credit card issuers allow for balance transfer on credit cards, which means that you can transfer one or more outstanding balances to a new card. This is helpful as the new card allows you an interest-free period of 90/180 days, during which you can make arrangements to clear your debt. 

Card issuers charge a fee on balance transfer, so choose the one with the lowest fee. Also, you should know that the holiday period is only on the balance transferred, any fresh usage will continue to be treated in the normal way. 

Smart Utilisation Of Your Card:  

Your credit card is a wonderful instrument for payments. All it needs is a smart way of utilizing your card so that you can remain out of debt. It is important to be aware of your credit card statement dates so that you can make payments on time. 

Use auto-debit facility if you feel you are prone to miss payments. Make effective use of reminders, if needed. If you have more than one card, use billing dates on the cards to your advantage.

Conclusion! 

It is very easy to spend on your credit card, but it takes a conscious effort on your part to remain out of debt. Credit card debt is not only financially taxing, it also takes a toll on your credit score. 

Hence, in CreditMantri's view, you ought to clear your credit card debt at the earliest by using any method stated above.
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Credit Cardcredit card chargescredit card usagescredit card advice
Written By: ZeeBiz WebTeam
Updated: Mon, Jan 14, 2019
03:03 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Customisable Credit Card is now a reality - You may customise features as per your lifestyle requirements Customisable Credit Card is now a reality - You may customise features as per your lifestyle requirements
Paisa Wasool: Credit Card - Tips & Tricks | How to avail maximum benefit | Step-By-Step Guide Paisa Wasool: Credit Card - Tips & Tricks | How to avail maximum benefit | Step-By-Step Guide
India’s 1st International Gourmet Card is here! Nature’s Basket, SBI Card join hands - Check credit card benefits on travel, dining and entertainment India’s 1st International Gourmet Card is here! Nature’s Basket, SBI Card join hands - Check credit card benefits on travel, dining and entertainment
RBI guidelines on credit, debit cards: All you need to know about new rules RBI guidelines on credit, debit cards: All you need to know about new rules
Axis Bank is close to acquiring Citigroup's retail banking business in India - What we know so far Axis Bank is close to acquiring Citigroup's retail banking business in India - What we know so far

LATEST NEWS

PM Modi inaugurates Digital India Week, hails technology for its role in the pandemic

Financial, IT contribute 93% of FPI selling in 12 months; FIIs on longest selling spree since CY08 global financial crisis

Delhi government monsoon session commences today; salary hike of ministers, MLAs on the cards

Zomato-Blinkit Deal: Food aggregator firm accused of not sharing information about deal on time; Investors file complaint with SEBI | Details

Moto G42 launched with Snapdragon 680 SoC at Rs 13,999 in India - Check full specifications and availability

DMart share price: Retail chain company stock jumps 5% intraday on Q1 update – Morgan Stanley sees 28% upside – know reasons here

Will recession hit Indian shores in six months? Zee Business Managing Editor Anil Singhvi decodes

Corporate Watch: JSW Steel, Titan, Torrent Pharma, Mindtree, Mphasis among 20 stocks that will remain in focus on dividend, bonus announcements this week

Despite windfall tax, brokerages remain bullish on oil & gas stocks; see up to 70% upside on ONGC, Oil India

Pricing flexibility, lower credit cost to help revive NBFC-MFIs profitability this fiscal: Report

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV