The lockdown was announced to control the coronavirus. Due to which many people lost their jobs while many others were cut in salary. In such a situation, financial crisis started in front of many. Many people have used credit cards extensively to overcome the financial crisis. Excessive use of credit cards has created a huge debt crisis in front of people. If you too are stuck in credit card debt, then consider some important things to get rid of the loan.
Balance Transfer: Using balance transfer, you can transfer the outstanding balance from one card to another at a lower rate and you will get up to six months to repay that debt.
Holiday hours: Credit cards usually allow 50 days for bill payments. If you are short of money and are using multiple credit cards, plan your credit card purchases in such a way that you get the maximum holiday period to pay your dues. This means, do not purchase on credit cards whose billing date is coming soon.
Personal loan: You calculate the total amount due on all your cards and talk to various banks for personal loan for the entire credit card amount. Take a loan from the bank that is giving you the lowest rate of loan and repay all outstanding credit card loans at one go. Select a personal loan tenure according to your repayment capacity.
EMI: You can also pay some credit card dues to EMI, you can pay in monthly installments on the due date. Your bank will charge a processing fee of between 1-2% to change the outstanding EMI.
High Interest Loans: If you have more debt on your credit card, first of all try to pay back the loan with higher interest. If you have more money in one card, then first pay another card from it.