The credit card is a great thing to have if they you use it wisely. Their reckless use may lead you to a debt trap. Guess you are in urgent need of money and your accounts are running low then in such situations these cards may be of great help. They give you of an interest free-period during which you can pay the debt without any costs. But if you find yourself stuck in debt you may the best use of the following credit card debt assistance way to pay off the debt:
1-Check Out The Balance Transfer Facility
If you are caught up in the bad cycle, you may use the option of the balance transfer facility. It will help you in transferring the debt from one card to the other. It gives temporary relief from debts. And the best thing is that the next bank may offer you a credit-free period of 90-days. You can make the best use of this duration to repay the pending amount. But if you are unable to pay during this period, you will have to pay the regular interest.
2-Go For EMIs
There may be times when you are unable to repay your credit card debt. Every credit card company offers you to convert the entire outstanding amount into EMIs. Banks normally charge monthly interest (2-3%) and a processing fee.
3-Pay-Off Debt With Higher Interest Rate First
It is something that many people forget to consider. If you have more than one credit card, most of us might be tempted to pay the debt which is due shortly. It isn’t required and wrong thing to do. Instead, you should be clearing the debt that comes with higher interest rate first. It reduces you net outgo.
4-Better To Speak With Credit Card Company
You might not be in a situation to repay the debts, and the reasons may be many. Most commonly a job loss or temporary loss in business may cause it, but your credit card interest charges have nothing to do with it, so they keep on mounting. In such situation, you must ask the bank whether they can do something about it. In most, they might offer you a temporary assistance.
5-Make The Most of Holiday Period
One of the best ways to manage your credit card is to make the most of the holiday period. Depending on the billing cycle and the date you make the purchase you can get up fifty-days of the interest period. In fact, most credit card users make the best use of this period to pay off their debts and also enjoy a breather by not having to anything from their debit cards. It helps you avoid a liquidity crunch.
6-Always Pay More Than The Minimum Due
Many cardholders just pay the minimum amount. But in this way, the debt keeps on mounting, and the borrowers are locked in an unending debt spiral. It is essential to remember that credit cards come with very high interest rates. So when you just pay the minimum amount, it only increases the outstanding amount at an exponential rate.
7-Know The Billing Cycle
You have to make the maximum advantage of the interest-free period, and you also make sure that you know your credit card billing cycle. It is crucial as you must know that you get the interest free period not from the day of purchase, but from the first day of the billing cycle.
In The End
These ways for credit card debt assistance are good if you implement them well. So go ahead and get rid of your debt.