Ever wondered if there’s a secret to getting ahead in the world of credit cards? There is, and it’s all about paying more than the minimum due. It’s not just a simple payment; it’s a smart financial strategy that can accelerate your journey towards financial freedom.
By adopting this, you can avoid overpaying credit card minimum due and save yourself from unnecessary financial burdens. Find below some efficient and smart strategies for faster debt repayment to avoid overpaying credit card minimum due.
Jotting down outstanding payments
Jotting down outstanding payments for all your credit cards online is important, you must break the payments into smaller parts. First, you need to jot down the details of each credit card you have. It includes –
- List of cards.
- Interest rates against each card.
- Credit card minimum due against each card.
- Yearly fees are charged against each credit card.
- Repayment dates of each credit card.
Discovering an effective payment plan
Prioritising which payment to clear first is necessary. If you are possessing multiple credit cards, consider paying off the most important bills. Gradually, move to the next credit card of the lowest importance. It is also advised to repay the credit card debt with a higher interest rate than a higher amount. It will help avoid paying a huge amount owing to accrued interest.
Paying in monthly instalments
A smart step towards avoiding overpaying credit card minimum due is to pay in easy monthly instalments or EMIs. Most credit cards allow you to avail of EMI facilities whereby you can choose to repay debts in EMIs. However, it is advised to check the processing fee on the outstanding bill of the credit card.
Also Read:- How Does Credit Card EMI Work?
Combining debts with a personal loan
Getting a personal loan to repay a huge credit card outstanding amount is another way to clear credit card debts on time. If you find it difficult to repay the debt on time, use personal loans. The interest rates of personal loans are much lower than the usual interest rates of credit cards. It will also minimise the EMIs based on tenure.
Utilising grace period
Credit cardholders must be aware of their billing cycle. Usually, banks offer a free period of 30 days after the statement generation. No interest is charged from the cardholders during this period. Additionally, they also allow a 15-day grace period. For instance, if a bill is generated on the 15th of a month and is due by the 1st of the next month, any purchases made post-15th of the bill generated month will be included in the upcoming billing cycle.
Having fewer credit cards
One of the most ideal strategies you can follow is to have fewer credit cards. With many new credit card companies coming up with lucrative offers, it is possible to get attracted. However, it is important to use your credit cards responsibly, less the number of credit cards, less will be debts and the hassle of repayment.
Opting for automatic bill payments
Remembering all the due dates could be a hectic task. Due dates mean users must go through late payment fees and high-interest rates. Automatic credit card bill payments online can be handy in such situations. They need to consult their bank for auto repayments and enable them. It will help them stay stress-free as the outstanding amount will automatically be repaid on time without manual involvement.
Conclusion
Implementing a strategy for faster repayment is helpful to avoid overpaying on credit card minimum dues. By making consistent, larger payments towards the debt each month, you can reduce the overall interest they will incur and pay off their balance more quickly. Taking control of finances and actively working towards debt-free through these strategies is a powerful step towards financial freedom.
