Getting into a debt trap is easy with a credit card. it requires a dedicated effort to break the debt trap. We present below 6 ways to get out of the credit card trap:
- Information is power and first and foremost action to be undertaken is to know the rate of interest at which you get charged for non payment dues on time while spending with a credit card.Pay the Entire Amount due Every Month
- While applying for a credit card make sure to negotiate with your Card Issuing agency to provide you a reasonable rate of interest at which you get charged on non payment.
- Put your cad payments on auto mode by linking it with your salary or savings account. So even if you forget, your account automatically pays your card.
- If you are in a debt trap, break a fixed deposit (FD) or take a personal loan which will be cheaper than credit card rate of interest.
- Some banks do have a Neutral Debt Counseling Session and one such bank providing such service is Bank of India [Credit Counselling Service (Abhay)]
- Do not have a large number of credit cards, just have one and stick to it.
- If you have a spending binge as per mood swings, better switch to Debit cards
We hope that above tips will help you to improve your Cibil Score which will help you to get loans at cheaper rates of interest.