Credit Card In Wallet- Great or Terrible?
Gone are the days, credit card turns into an unquestionable favor card in a wallet. They are the most effortless approach to pay our purchases regardless of the possibility that you are not having the financial balance.
Everything accompanies upsides and downsides and the same with credit card too.
There is no harm in having a credit card; in truth it gives you a money related support when help is desperately needed. In any case, it is imperative to utilize the credit cards carefully.
Credit card is one of the imperative variables which affect your credit score. Credit score is essential for an individual in light of the fact that on the off-chance that you don’t have a decent credit score, you will face inconvenience in getting loans/credit card and so on.
The most fascinating part of credit card is a minimum amount payment.
Did you ever make the minimum amount payment of your outstanding bill?
On the off-chance that, Yes.
At that point, I am sorry to inform you that you may confront money related inconvenience later on in light of the fact that it’s only a temporary relief. In fact by paying minimum amount you are actually paying more amount to the bank, if you calculate (interest varies from bank to bank).
There is no harm in the event that you are paying a minimum payment once in blue moon, however if you are paying minimum amount consistently, then you are actually impacting your credit score.
Indeed, you are paying more than the amount of your purchase. Because, unless you pay the total amount due, you will be charged interest.
My Dear Friends!!!
Be careful, in the event you are choosing to pay the minimum amount.
Because, unfortunately you are picking an unimaginably costly choice which gives you a temporary relaxation now, yet expanding your future inconvenience.
What happens if you pay the minimum amount routinely?
- Paying Regular Minimum amount = Interest caused + Very little part goes to your genuine purchases (the extent relies on upon your credit card rules).
This Implies; If you are paying minimum amount, then you will take so many years to pay off your original purchase.
- Your credit score impacts severely.
- If you are consistently making minimum amount, then your outstanding goes up and up which result in an unfortunate situation and may prompt to mental anxiety.
- If your card is in collection division, then the team may inconvenience you by requiring the installments and at some point they may approach you for settlement also. But, ultimately your credit score impacts, so it is ideal to avoid making minimum payments.
What is the best possible solution you can do to avoid credit card debt in case of financial issues.
- Do not make minimum payments, in fact approach your bank for converting the outstanding into EMI (generally they do).
- You can likewise apply for Insta Loan/ Jumbo Loan/ Loan on card, etc. (banks generally offers different sort of loan without documentation, you can request them to check your eligibility).
- Balance Transfer – If you are having multiple credit cards, then you can easily pay your outstanding from another card (if the card is eligible for this offer). By this way you are actually stretching your due date.
- Personal Loan – You can apply for personal loan either from the bank or finance company.
Consider the possibility that you are as of now into this credit card money related inconvenience. What you will do?
- Call your respective bank and get some information about the interest and purchase amount from your outstanding payment. Also, attempt to consult or negotiate with them for interest portion. Don’t worry, they will do their best for valuable customers.
- You can request for loan as mentioned above to get relief from daily interest.
- Lastly, if the bank or a collection team is approaching you for settlement, then please take cibil cleaning in written. For more information you may contact the debt counselor as well.
I have shared the information as indicated by my experience. The similar happens with one of my known individual and I truly don’t want a similar inconvenience for anyone.
In case of any help, you can consult with a debt counselor. Don’t take this matter casually.
Pardon me for any mistakes. I trust this blog may help the credit card users.