Irrespective of the financial goal or situation one should regularly follow the credit card debt repayment plan. Late payment of credit card balance can seriously affect one’s CIBIL score and credit score. There can be many reasons for not being able to pay off credit card balances on time, including high expenses and loss of income.
Late payment penalties, higher interest rates and even card deactivation can be added, apart from the impact on scores. Meanwhile, S. Ravi, the founder and managing partner of Ravi Rajan & Co. said that financial instability has been seen more in recent years. The cost of living has reached a new level as the pandemic has almost abated.
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According to the latest RBI figures, more than 76 million credit cards were outstanding in May. This figure is 23% higher than May last year and 100% higher than May 2018. If you have a credit card, you may face consequences if you struggle to pay your bills on time every month.
Ravi shares tips on how you can manage your credit card bill payments to avoid last-minute crunches:
Spending money on the right things, as well as making an effort to save money, can help with credit cards.
No matter how much you earn in a month, spend as needed and keep the rest in savings. How should your savings be 3 – 6 months worth of expenses should be in your savings.
0% APR credit cards give us a long interest-free period of over a year.
There are also those who pay their credit card balances late due to financial difficulties. There are people who forget the due date and get into trouble without paying the bill. If you don’t want to be the latter, set a reminder and settle the bills before the deadline.
It is a good idea to link your bank account with it and activate the auto pay option to avoid paying the credit card bill late.
EMI options are offered to pay off credit card balances. These EMIs come with a fixed tenure with relatively lower interest rate than APR. This will allow you to pay off the balance in a well-planned manner.
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Tags: Business, Credit Card