How to get rid of credit card debt quicker – Follow these ways

In a time of liquidity crunch, more often than not, credit cards usually provide an easy way out. In the backdrop of the present worldwide scenario, usage of credit cards has increased significantly.

One unfortunate result of that is a due arising because of excessive and improper usage. It is inadvisable to accumulate credit card debts and clear out such dues at earliest so that there is a minimal adverse impact on financial health of said individual.

To that extent, here are a few ways which will help in the liquidation of such debt –

  1. Personal loan

    An individual can avail a personal loan to settle credit card debts by making RBL credit card bill payment or payment for any type of card. Even though a personal loan is also a form of credit, there is a distinct difference between the two.

    In case of credit card debt, outstanding amounts are likely to attract a high rate of interest, which may go up to 40%. On the contrary, the rate of interest for a personal loan used for debt consolidation is comparatively lower.
  2. EMI conversion

    Outstanding dues can also be converted to Equated Monthly Instalments (EMIs). It is on the basis of capacity to repay, there are two ways in which the EMI conversion can take place. Either the whole bill is converted, or selected transactions can be identified to be converted into EMI.

    It is understood that even though rate of interest varies across EMI conversions depending on credit card issuer, the same will still be less than the charge which will be levied on outstanding dues. One can apply for credit card online and choose the one with relevant benefits.
  3. Balance transfer

    In case of a balance transfer, the outstanding due of a credit card may be shifted to another credit account. For example, the money that is due or outstanding on a credit card can be converted to a low-cost EMI payment method.

    This particular method not only enables transferring dues from one card to another but also dues of multiple cards can be transferred to any one card. Before applying for a credit card online, check whether this feature is available or not.

    The resultant benefit in this regard is that the credit card holder enjoys an additional duration of credit-free period of up to 90 days. This period can be utilized for the outstanding RBL credit card bill payment without having further interest added to the amount.
  4. Snowball method

    This particular strategy prioritizes in resolving the debt obligation in the instance of multiple credit card loans. The prioritization will take place based on the outstanding balance amount. The rule here is to settle the lowest outstanding balance first.

    It is incumbent upon the credit cardholder to make the payment of the minimum balance amount, notwithstanding remaining credit lines and interest rates.

    Once loan of the minimum amount is paid in full, the money may be rolled onto the following smallest amount. It is also one of the methods of using a credit card wisely.
  5. Liquidating investments

    Liquidating investments should be the last option, and it should only be taken when there is no other recourse left to repay credit card debt. However, be careful about the investments to be liquidated.

    Consider this, in case of fixed deposits; the interest yield will not amount to half of the rate of credit card debt. So, by liquidating the fixed deposits or similar such low earning investments the credit card debt or RBL credit card bill payment can be carried out.

    However, it is important to ensure that such measures are not taken on a regular basis, else the financial health of an individual can be seriously compromised.

    Reputed NBFCs like Bajaj Finserv offer RBL Bank SuperCard that provides easy EMI option, cash withdrawals from ATMs, reward points, and affordable rate of interest.

    Owing to its various features, it is highly flexible and at the same time has the provision to extend emergency financial backing.

    Pre-approved offers on credit cards also facilitate the process. Companies like Bajaj Finserv provide such offers to existing customers.

    The approval is almost instantaneous and to check your pre-approved offer, only basic details will have to be provided. Such basic details include name and contact details.

    Credit card debt accumulation can affect one’s financial history significantly. One can follow the above mentioned methods to clear off their debt without affecting everyday financial requirements.