Irrespective of misconceptions prevailing regarding credit cards, approximately 36 million people in India own one. Given that, some of them are likely to face financial problems and find it difficult to pay the outstanding dues of their credit card. In such circumstances, their biggest question would be ‘how to avoid the high interest rate of credit cards?’. On that note, before you find yourself stuck amidst such questions, below are some tips on how to avoid or minimize the interest charges on credit card outstandings.
Convert your credit limit into personal loan: This facility is something new and extremely lucrative. However, it won’t help you avoid interest charges on the outstanding dues but it will certainly help you keep it to a minimum. If you are aware of the fact that the financial problem will continue for more than a month, convert your credit limit into a personal loan instead of taking cash advances or swiping your card to get through your cash needs. Conversion facility will allow you with more time to repay and will distribute the debt into multiple EMIs.
Debt consolidation: You can also opt for debt consolidation loan to pay off your dues. This will reduce the payable interest and entitle you with more time.
Distribute your expense: If you happen to own multiple cards, you can distribute the expenses and minimize the payable interest.
Lastly, you can opt for credit cards which charge 0% APR. Simply put, opt for credit cards which don’t charge a single penny towards the outstanding credit card dues.
Also Read: Ways to Avoid Paying Interest on Credit Card Debt
