If you are trapped in a credit card debt, then it is apparent that you have learned your lesson of its usage. By now, you must have known the good and bad of credit cards. The interest rate on credit card outstanding bills is heavy. The penalty on delayed payment of credit card dues is also big numbers. So, if you have a credit card debt, then you should think about paying it all. Otherwise, it will be difficult for you to lead a healthy financial life. A credit debt will never allow you to generate wealth.
You must understand the billing cycle of a credit card. For that, you need to know the minimum due amount, total due amount, and outstanding bill on your credit card of the current billing cycle.
Minimize your expenses
The wise thing is to cut down all the unnecessary expenses and minimize your expenses. It is you who know your expenses. I can help you understand unnecessary expenses. Dining out or home delivery of food is an unnecessary expense for you. At any cost, you must cut this expense. A credit card debt is a time when you should only expense on necessity, not on your full-filling desire.
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Balance Transfer
TIf you have more than one credit card, then you can avail of this service. This feature of a balance transfer is the default in all the credit cards of SBI(State bank of India). I often receive emails regarding balance transfer offers on RBL(Ratnakar Bank Limited) bank credit cards. You can call on your alternate credit card bank customer service and ask for the offers. Transfer your balance with the EMI option so that you can pay the credit card due.
Personal Loan
You can get in touch with the bank and ask for a personal loan to repay your credit card debt. If you have been paying your minimum amount due on time, there are chances that your credit score will be enough to get you a personal loan. Untimely payment of credit cards spoils your credit score very fast. Getting a personal loan might be a difficult task, but there is nothing wrong with trying.
Look for an additional income or passive income
Yes, you read it right. It will help if you are looking for an additional income. With an extra income, you shall be able to get rid of this debt situation quickly. Yes, you will have to work hard. But it will be rewarding because you will have a debt-free life quickly. It would be best if you looked for part-time work based on your skillset.
Convert your assets into cash and pay the debt
This way of paying credit card debt will help you improve your financial burden. Suppose you have any fixed deposits or mutual funds. The rate of interest is minimal on fixed deposits. Long term Mutual fund investment gives you a return of 12% on average. You pay interest on average 20 to 40% on the credit card. Do the math, and you will know that paying your credit card debt will be beneficial in the long term.
My personal experience says that with any loan going, it is challenging to generate wealth. It is better to pay your credit card debt. You have learned the lesson of credit card debt the hard way. Now stick to discipline and don’t commit any mistakes, and lead a good life.
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