In today’s time many people use credit cards. Due to not being able to use the credit card properly, many times people get caught in the debt trap due to overspending.
Many times people are not able to take care of their limit even in the greed of attractive offers, and end up buying more. Due to which credit card users are unable to pay their EMIs on time and get stuck in financial trouble.
Users who are unable to pay their credit card dues within the stipulated time can take advantage of the EMI conversion facility. In case the interest rate on EMI conversion is high, users can also look for other financial options.
credit card balance transfer
Many card issuers offer balance transfer options to existing holders of other credit card issuers. It allows you to transfer the unpaid balance to another credit card issuer for a predetermined period with relatively little or no interest, usually up to three months.
This is also known as the promotional interest period. Credit card issuers start charging normal finance charges on the unpaid portion of the transfer amount after the promotional interest period is over.
You can opt for the balance transfer option to manage your credit card bill efficiently. Some credit card issuers also allow conversion of the transferred balance into EMI.
Looking for alternative credit options
Credit card holders can also avail personal loans, top-up home loans and gold loans to get themselves out of the debt trap. The interest rates charged by lenders on such loan options are generally lower than the rates charged on credit card EMI transfers. Lower interest costs can increase your chances of getting rid of the debt trap.
Conversion of outstanding amount into EMI
Many credit card issuers offer the facility to convert your pending dues into EMIs. This way, you can repay the total amount in smaller amounts over an extended period, as per your repayment capacity. Most banks charge an interest rate for converting your outstanding amount, which will become a part of your EMI.
This interest rate on EMI is likely to be much lower than the finance charges on your outstanding balance. This interest rate may vary as per the tenure chosen by you to repay the outstanding amount through EMI.
Taking personal loan with low interest rate
You can take a personal loan to clear your credit card dues. This can be especially helpful for people who have high credit card dues. Generally, credit card providers charge an interest rate of around 40 per cent per annum, while you can get a personal loan at an interest rate of around 11 per cent.
