Credit card is a boon in today’s world. As more and more people are engaging in cash less economy, banks are witnessing a hike in credit card demand. Banks easily offer credit card to their customers but one should always know how to use a credit card responsibly. You should pay your credit card bills on time and never exceed the credit limit. But even after following all the rules sometimes you might find yourself deep in credit card debt. So now for the moment, stop thinking about how you got that debt and think about how you can get rid of it sooner.
Here are some useful tips for you to get rid of your credit card debt…
Freeze your spending
Stop spending your money! Freeze your outgoing credit via credit card, debit card, net banking or mobile wallet. Use your money only to purchase necessary things. Sort your financial priorities and keep repaying credit card debt on the top. This way you will save a lot of money to repay your credit card debt.
Convert bill into EMIs
People usually pay the credit card bills on the monthly basis to avoid spending on interest rate. But when you have a debt which you can’t pay in a month, you should opt for EMIs. The credit card EMI option will convert your debt into equal installments for tenure of your choice. By converting your credit card debt into EMIs you can easily pay it back without any hassle.
Start with the costliest
If you are facing a debt issue from multiple credit cards, convert them to EMI and start paying the costliest debt first. The credit card debt in which you will have to pay the costliest interest rate, should be paid back with priority. You can also opt for LAP to consolidate all your multiple credit card debt. By doing this you will be required to pay only one and comparatively low interest rate.
Liquidate assets
This is the last resort to opt for to tackle your credit card debt problem. Use your savings, FDs or investment in mutual fund to pay your fat bills of credit card debt. You will face a setback in your financial life and may be vulnerable to financial crisis, but to tackle the mounting debt you should take this risk.
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