5 Simple Ways To Repay Your Credit Card Loans
Understand how you can repay your credit card loans in 5 simple ways
indiagold team
24 Mar 2022
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Credit cards are some of the best tools and act as a savior during times of emergency. However, it needs to be used wisely otherwise it can create the worst debt trap you could ever fall. Credit card companies usually earn through the heavy interest they charge from their customers. The levy of interest usually starts if you do not repay your credit card dues or partly pay them.


If you already have an outstanding credit card loan, then the best you can do for yourself is to get rid of your credit card loan as soon as possible. Here are the 5 simple yet most effective ways to repay your credit card loans at the earliest:



1. Balance transfer


Balance transfer is a facility where you can transfer your outstanding balance from one card to another card. It also allows you to transfer the outstanding balance from multiple cards to a single card. It acts as a temporary relief for the borrower whereby he is provided with a credit term to repay his dues. The credit term usually ranges around 90 days. After the end of the credit period, the company will start charging the interest on the outstanding balance.


2. Gold loan


This may prove to be the most beneficial method to repay your credit card dues. The credit card involves a huge interest rate; therefore, it is far beneficial to repay it by taking a lower interest rate loan. Following are the benefits of using a gold loan to repay your credit card dues.

  • Lower interest rate: Gold loans interest rates are usually around 10%-12%. It is just 1/3rd of what the credit card companies charge. With such a huge reduction in the interest rates, this can lead to a considerable reduction in your monthly EMI amount; thus, reducing the financial stress.
  • Faster processing: Gold loans are instantly available as it does not involve many formalities. With minimum documentation and fast processing, you can even get the disbursement the day you apply for the gold loan.
  • Flexible repayment options: Gold loans also come with flexible repayment options; thereby, making it convenient to pay.


3. Curtail your expenses


Another way of repaying your credit card bills is to curtail your expenses as much as possible. While planning your budget, put a limit on your expenses and spend only when necessary. This will help you save a considerable amount of money that you can use to repay your credit card debt. Soon, you will realize that most of your debt has been repaid. This will also bring discipline to your spending habits and help you decide on your spending wisely.


4. EMI repayment


If you find it difficult to repay a lump sum amount toward your outstanding credit card bills, then you can consider converting it into EMI mode. You just need to visit your bank and request them to provide you with an EMI option. However, you will have to bear the interest cost on EMI, and processing fees may also be levied. The rate and charges will vary depending upon the bank.


5. Liquidate existing assets like FDs


If you feel that you are in deep debt, then you can consider liquidating some of your assets like one or two of your fixed deposits, sale of some of your shares, or mutual fund units. Although disappointing, it might save you a lot of money as credit cards involve hefty interests and other charges. In some cases, the interest rates go up to even 30%-40%. In such cases, it is better to leave returns of 10%-15% on your assets to save 30%-40% interest on credit cards. Once you become debt-free, you can reinvest in your assets.


Bottom Line


Credit card loans can be huge distress for your finances. With some effort and proper planning, you can easily repay your credit card loans. If the loans are of considerable amount, then the best way is to use affordable gold loans as till the time you save to repay your credit card loan, already a heavy interest would have been levied. Availing gold loans at some of the most affordable rates has become easy with indiagold, as it comes with easy to fulfill criteria and convenient service available at your doorstep.


FAQs


Q: How are gold loans beneficial than personal loans for repayment of credit card loans?


A: Personal loans are unsecured and therefore involve higher interest and other charges. Also, the documentation requirements and eligibility criteria are easier to satisfy in **gold loans **than in personal loans.


Q: What is the process to avail of a gold loan from indiagold?


A: Availing gold loan from indiagold is relatively simple. All you need to do is follow the given steps:


  • Visit the website or give a missed call on 1800-123-999-888. A personalized loan advisor will guide you through the process.
  • A loan manager will visit your house to process the loan application. It only takes 30 minutes. Once the application is processed, the money gets transferred to your bank account instantly.
  • Gold is packed in front of your eyes in GPS-enabled packets and stored safely in secure lockers with insurance.
  • After the closure of the loan, your gold is again delivered to you within the next working day; thus, making the entire process available at your doorstep.

Q: How repayments can be done for gold loans?


A: Flexible repayment options are available in gold loans. With indiagold, you can easily make your payments through regular banking channels or the indiagold app.

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