New Delhi: Credit cards are such a facility for banks, and people can use them efficiently. However, ignorant people do much harm with credit cards. If you have had a credit card for a long time, you can find the easy way to get out of debt below. Now, the NPA report related to credit cards is quite surprising.
According to the report released by RBI, the credit card N, PA, which was 2,404 crores on March 2, has increased by 136 per cent to 5679 crores by June 2024. The 39.46 per cent increase between March 2023 and June 2024 alone has surprised everyone. The increasing burden of credit cards and the economic crisis looming over the people are also taking a toll on life.
Many times, due to not depositing the loan, people are forced to take steps like suicide. But if you are a credit card holder, there is no need to worry. We will tell you easy ways to get out of such debt.
Settle expensive debts first.
Do you know that some strong planning has to be done to get out of stress? All your debts have to be ranked according to the rate of interest. The debt with the highest interest rate should be repaid first. Keep repaying the instalments for the rest of the debt comfortably.
This will prevent you from defaulting. This also keeps the credit score good. According to expert Jigar Patel, by repaying the credit card with a higher rate first, your total interest remains low with every payment. The credit score also remains safe when making the minimum payment.
Get rid of small debts.
This is also a good option if you want to repay the smallest debt first. You can focus on the upcoming goal by repaying the smallest debt first. Ending small debt also increases a person’s confidence. According to experts, this method can be tricky for customers, which is excellent.
How do you convert an expensive loan into a cheap one?
You can also convert an expensive loan into a cheap one, a; there a great way to do this. First, transfer the money to a low-interest card. This gives you some time, after which you can comfortably repay your principal amount. Some cards offer only a a 0.99 interest rate for the first six months.