Credit cards, if not used right, can be an express ticket to debt traps. One of the most common ways of doing that is missing your CC payments. The same CC, however, can be a blessing for people who know how to manage their debt right.
While some people miss their CC payments due to poor financial planning, others simply forget to pay their bill on time. With proper planning and some simple steps, one can be on top of their CC payments resulting in a strong credit profile. In this article, we will explore 5 ways to pay off your credit card bills faster and hassle-free.
A good way to pay off your CC bills faster is to start with the big ones. This means that you start by paying off the bill on your CC that has the highest interest rate. On the other hand, you pay the minimum due on your other CC. When this highest interest rate card is completely paid off, you can use the extra funds to pay off your credit card with the second-highest interest rate. Keep doing this to the point where all your credit card bills are paid off.
Consider the Options
A good way to pay off your bills faster is to consider various CC options that make it easier for you to pay the dues. For instance, you can get a 0% APR credit card. APR (Annual Payment Rate) is the interest charged by a credit card company over a year. 0% APR credit cards offer 0% interest on your credit card balance for specific amounts of time, which is generally a year. Once you get a 0% APR credit card, you can transfer your current credit cards due to the new card. This can help you avoid interest payments on your balance for the 0% APR period. All you need to do is make the minimum payment every month.
This way, you can benefit from the grace period to pay off the principal amount and clear your CC bills before interest payments start again.
Credit cards generally carry high-interest rates and late payment fees. All major credit card companies, including the best credit card in India, allow the auto payment or auto-debit facility. This facility can be useful to avoid missing your CC payments. It enables the due amount to get debited from your bank account every month automatically. Thus, you don’t need to worry about missing payment due dates because of a busy schedule, travel, or any other reason. Moreover, you can choose to pay the minimum amount due or the total outstanding amount through this facility.
- Plan the Cycle
One way to clear your dues quickly is through proper planning of your billing cycle. An important thing to do in this regard is to keep track of all the amounts due on all your CC. It happens often that when we think of our debt, we only remember a rough figure and not the exact amount. Note down the amount of money you owe on each card and plan their cycles accordingly. For instance, if you get a 30 day credit-free period on your credit card, it starts on the first day of your billing cycle (and not on the day of purchase). Therefore, if the billing cycle begins on the 5th of every month, any purchase made on the 4th gives you one interest-free credit day. Conversely, a purchase made on the 6th gives you 29 days of interest-free credit window.
- Try EMIs
If you’re unable to make your rbl credit card payments, you can consider other options to avoid a debt trap, and pay your dues faster. One such option is to ask your bank to convert your outstanding amount into monthly EMIs. This way, you can pay off the amount in a few months’ time.