In this pandemic, many people have suffered from the financial crisis, among them, many resorted to credit cards to meet their expenses. In such a situation, the credit card bill of the people has increased, which they are facing difficulty in paying. On the other hand, if you do not pay the credit card bill on time, you may have to pay interest for 3 to 4% of the month. If you too are caught in the vicious trap of credit card bills, then we are sharing some tips to help you out.
Convert your Card Bill into EMIs
If you have become a defaulter and are unable to pay the credit card bill, then this will impact your CIBIL score. Although a late payment will not affect the score that much, but if you have a track record of late payment, it will definitely spoil your CIBIL score.
So,you must pay your bill on time. If you are unable to pay, then you can convert your credit card bill into EMIs. Although, you will have to pay a little interest on that but this will drastically reduce your burden. Banks usually charge up to 2% per month for interest on EMI conversion.
You can transfer the balance of your credit card to another credit card
If you have more than one credit card, you can transfer your credit card bill or amount to another card. If you shift the outstanding amount to another card then you get a different credit period. By doing this, you get extra time to pay without increasing interest.
Avail of your rewards and cashback
If your credit card issuing bank has not yet generated a bill, you should redeem your reward point. Some banks allow you to pay credit card bills using their reward points. If your bill is not yet generated and you have cashback points, you can use these to pay your credit card bill.
At least pay minimum credit card bill
If your credit card bill is overpriced and you are having trouble paying it, then at least pay the minimum due of the credit card bill. The first option is to pay in full, the second option has the option of paying a minimum amount due ie 5%. In the minimum amount due case, interest is charged on the remaining 95% amount. This remaining account comes with a 3-4% interest in the next billing period.
You can pay by taking a personal or gold loan
You can also pay a credit card bill by taking a personal loan or a gold loan. In this way, you will get a loan at a lower interest than your credit card interest. With this, you will be able to pay the credit card dues, and you will not have to bear much interest.