Credit cards have become extremely popular among the younger generation in urban areas, with credit cards being readily available if you have a job and a good salary, people have almost stopped taking cash with them and holding credit cards instead. Sometimes the misuse of credit cards increases the loan burden. Then people make the mistake of paying the minimum amount. If you are also burdened with credit card loans, consider some of the important things that we are referring to below.
1. Reach credit card issuer: If you are paying most of your credit card bill on time, it is an excellent thing for you, it will reduce your loan burden as well as the CIBIL score. If you have had a good record of card repayment in the past, you can request the credit card issuer that the repayment terms may be relaxed if the bill exceeds what you expect. If you're a responsible customer, most lenders will, if possible, find a way for you.
2. Convert to Personal Loan: If your credit card loan is too high and you are not able to repay it, you can convert your credit limit into a personal loan and pay in EMI. However, this is an expensive way because the interest rate on personal loans is very high. Use this method only if you don't have any other way to repay your credit card loan.
3. Solid Repayment Planning: You can work under repayment strategies to get out of debt. You can make 'pay more than the minimum' or choose the 'Debt Snowball' option. If you have surplus savings, you can pay more than the minimum amount payable every month to reduce your loan.
4. Permanent Instructions: Most lenders have automatic payment facilities on credit card payments. You can set up permanent instructions for payment to avoid delaying the due date recall. You can set the standing instruction option for your credit card, for a specific date every month.
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