Manage your credit card bill payment to avoid last-minute hassle; Here’s how

In recent times, the use of credit cards as a payment option has been gaining traction thanks to the benefits it offers to customers. However, individuals need to keep several factors in check if they want to avail the benefits. A credit card offers a great chance to obtain interest-free credit during the grace period before the bill payment due date. On the other hand, if the full amount of the bill is not paid on time due to overspending, a loss of income, or for any other cause, it may result in late payment fee, higher interest rates, a poor credit rating, and other things. In the worst-case scenario, the credit card can also be deactivated by the lender. Referring to these issues, S Ravi, Former Chairman of BSE and Founder & Managing Partner of Ravi Rajan & Co, suggested some solutions for users who are due to pay their credit card bills and how they can avoid any ramifications on their financial status. Here are the tips that can bring some solutions to credit card bill payment issues:

• The first and foremost option is savings. If a person spends his money wisely and also makes efforts gradually to save some amount from his earnings, he will not fall short of funds while paying the credit card bills.
• One should always keep money required to bear expenses for at least 3-6 months in emergency savings.
• A person can also opt for zero percent APR credit cards which provide a longer interest-free tenure.
• A customer can avail a balance transfer credit card or a debt consolidation loan to get instant financial relief.
• A consumer should utilise his credit card smartly and choose the option when it’s really necessary. Otherwise, their CIBIL score can be affected.
• A credit card owner must set a reminder for the due date and pay off the minimum amount if it’s possible.

On 5 May 2021, the RBI approved the second moratorium in response to the difficulties that individual borrowers suffered during the second COVID wave. However, deferment strategies should only be selected in extreme cases. Otherwise, one should avoid adopting a moratorium and continue paying credit card bills if they have enough money to spare. After the COVID-19 pandemic, India has been seeing a surge in users depending on credit cards for the majority of their payments. As stated by Ravi, there has been a lot of financial volatility in recent years. The cost of living rose to a completely new level just as COVID-19 appeared to be fading away. As a result, just as we believed our financial situation was starting to improve, we found ourselves once again struggling under budget pressure. Due to the pandemic, Indians had to borrow money because their income was reduced. In May 2022, there were more than 76 million active credit cards, according to the Reserve Bank of India’s latest statistics. Estimates reveal that this is an increase of 23 percent over May 2021 and a hike of more than 100 percent over May 2018. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.