How to easily manage your credit card debt

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Having a high credit score demonstrates one’s ability to make payments on time, thereby improving an individual’s creditworthiness. Additionally, the cardholder can also earn reward points and redeem them for discounted products, travel miles, and other offers.

Some people view credit cards as a hassle and tend to avoid them. However, some experts believe that one should start one’s involvement with credit cards early in life, as it helps in establishing a good credit history if managed well and getting the benefits while living a credit-free life. debt.

The problem with credit cards, as well as their extensive use, is to clear the dues at the right time. Experts say the reason behind using a credit card shouldn’t be just about being able to buy things on credit – but the process of building a concrete credit the story of paying the bills on time works. This way, the cardholder gets the advantage when accessing financial products such as loans.

Having a high credit score demonstrates one’s ability to make payments on time, thereby improving an individual’s creditworthiness. Additionally, the cardholder can also earn reward points and redeem them for discounted products, travel miles, and other offers.

Choose the right card
There are many credit cards available today, and it’s important to choose the right one. All of them may seem similar to a newcomer, but different credit cards are designed for a wide range of people with varying incomes, needs, and goals. Therefore, experts say one should find ones that suit their lifestyle and income.

For example, for frequent travelers, a travel-centric credit card instead of a generic card will be more advantageous. likewise, someone just starting out in their career should avoid going for a premium card – with the maintenance changes, monthly/annual expenses and annual fees could easily lead them into debt on their credit card.

Know your card fees
When landing with a credit card, know its interest rates, credit period, repayment term, etc. Credit cards become expensive with their various fees that add up and accumulate, only when dues are not paid. There are several fees associated with credit cards, such as interest rate, annual fee, late fee, credit limit, foreign currency markup fee (overseas travel), etc. debt. Therefore, it is important to go through the fine print.

Dealing with Multi-Card Debt
If you’re in the unfortunate situation of having multiple credit card debts piling up, experts say, in such a situation you should start by paying off the card with the highest interest rate first. At the same time, try to keep paying the minimum amount of other cards until the card with the highest interest rate is paid off first. Remember not only to pay the amount of interest, but also to spend more money paying off the principal rather than the interest, at least for one card at a time.

Loan without debt
To get rid of credit card debt faster, experts say one could try getting a debt-free loan from a family member or friend. Alternatively, one can also opt for a lower interest rate loan with them.

Transfer your debt
With the approach of a balance transfer, the amount owed from a credit card can be transferred at a much lower interest rate. Several banks offer this option and allow cardholders to transfer dues across multiple cards to a single balance credit card. This lowers the cardholder’s interest rates and eases the process of paying off the debt.

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