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