Credit Cards are like a boon for middle-class people during cash crunch or an urgent financial aid. One enjoys the handsome benefits that banks offer like cash back, discounts or reward points. However, on some time it's hard to manage the credit balance and clear-off pending dues. If one fails to pay the due bill on time, later it becomes a big challenge to get rid off it. Adding to backdated balance dues and unpaid EMIs come with a host of charges, which makes your repayment even more difficult.
After one gets trapped in credit card dues it becomes a headache to pay off the bills that comes with huge interest rates. After a long delay, one has to end up paying huge interest rates with 36-48 percent more on the outstanding balance of a credit card.
Well, if you want to get rid off long pending credit card bills and get out of the debt trap but failing after multiple tries, here are 5 useful tips to maintain your credit score tension free
1. Plan Utilisation Of Card Use:
One needs to keep an eye on credit card limits and pocket's strength. Keeping a complete record and watch on expenses reduces the burden from your head. Swiping card every now and then is easy but paying off the debt is a severe headache.
2. Choose EMI options to avoid high interest:
If one has to swipe credit card for big amount, then monthly EMI option is the best way to minimize it as it will get divided into months--like 3-6-12-1-24...etc. Monthly EMI option makes it easy for one to pay the bill on time and no interest rate hectic. If it's one-time swipe (big amount), one can contact the bank and ask to divide the amount in EMI as per your convenience.
3. Eye on Credit Card Statement:
One need to keep eye on the billing date of credit cards so that they can analyze expenses and plan to pay the particular bill amount accordingly. To avoid interest rates, one needs to pay the bill on or before the last date. Fortunately, to pay the credit card bill banks give customers around 28 days of relaxation. So, it is easy to get rid of the bill as even one can pay the amount, particularly in two transactions as per convenience by the last date.
4. Pay Credit Card Bill on Time:
To avoid huge interest rates that become a burden after some time, it is mandatory for credit card users to pay out outstanding bills on or before the due date. If one plans to push it for the next month, then this should be avoided as later it becomes more difficult to pay the bill that comes up with interest. Notably, banks give around 45 days to pay off a particular transaction amount with ZERO interest rate (Non-EMI transaction).
5. Pay off minimum balance of the due statement:
If it is difficult to pay the whole due amount altogether, then one should at least pay the minimum due balance. By paying the minimum due amount, it will reduce your chances of interest rate and burden for the next month. In fact, it will also help you maintain a good credit score.