sarabjit ke sen19 minutes ago
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According to Reserve Bank data, there are more than 10 crore credit cards in the country. Due to this, the expenditure has increased by 17% in a year to ~ 1.65 lakh crores. If your credit card dues have increased a lot and you are facing difficulty in repaying it, then taking a personal loan to repay it would be a better strategy.
Personal loans are also expensive, but they are cheaper than credit card dues as their interest rates range between 10.5 to 20.6% while the interest rate on credit card dues is 40% or more. Keep these things in mind while using a credit card.
Avoid getting into debt by spending wisely
People think they have money and spend money through credit cards, but when the time comes to pay, they realize that they do not have money. So control your spending to avoid getting into a debt trap. Avoid spending more than your income.
Keep in mind… credit card interest is very high
The cost of borrowing a credit card is very high. Credit cards have the highest interest rate among all credit products. It can be more than 40%. Always use a credit card like a debit card.
Don’t make this mistake if you are unable to pay the dues
Paying the minimum payment every month may feel good, but it can also be costly. If you have a habit of paying the minimum dues, then curb it. Otherwise, interest will keep accumulating on the dues, due to which your debt will keep increasing.
Choose the best card according to your needs, it is important to pay attention to the terms and conditions
- If you plan to use a credit card primarily for grocery shopping, choose a card that offers rewards points on supermarket purchases.
- You can get cards for different purposes based on your needs that offer reward points at restaurants, frequent flying and cash back.
- Understand credit limits and compare interest rates on revolving credit. Understand annual fees, late payment and other charges to avoid unnecessary charges.
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