When it comes to credit card payment, borrowers must have a clear understanding of how it works. At the end of one billing cycle, lenders send monthly statements notifying the minimum and total amount payable. Individuals need to pay these amounts before a specific date called the due date. The timeline between this due date and the statement date is interest-free and is known as the grace period. So, if borrowers can practice repaying the total amount within this grace period, they can easily get rid of the debt.
Here are some tips to reduce your credit card debt –
- Primarily, borrowers should always track the credit limit to control their debt. As per financial experts, maxing out the given limit can also cause damage to an individual’s credit record. Therefore, cardholders can maintain a credit utilisation ratio of up to 30% of the credit limit, and they can manage their debt as well as credit profile efficiently.
- Cardholders can also ask their financier to convert the entire payable amount into monthly instalments as EMIs come off as more convenient payment options. Such payment also attracts relatively lower interest than the initial interest levy.
- Moreover, individuals should always try to clear the entire monthly outstanding within the due date to avoid any additional cost. If not possible, they should pay more than the minimum amount due for a reduced interest levy.
- Card users can opt for a balance transfer facility as well that allows them to transfer their total dues to another card. The new card comes with an interest-free timeline of up to 90 days that helps borrowers to repay the debt easily.
Also, borrowers can select cards like the Bajaj Finserv RBL Bank SuperCard if they are looking for best credit card offers that come with competitive features to maximise the benefits.
Lastly, to ensure timely credit card payment, borrowers can consider automated payments that can also help save a significant amount on penalty charges.
You may also look for a Credit Card App for more information.