What are Some of the Best Ways to Repay a Credit Card Debt Fast?

Credit cards are one of the most popular financial products used by people. In fact, to this date, the banks have issued 30 million credit cards in the country (at the time of writing).

As the government continues to push digital economy and the people are using more and more digital payments channels, credit card users are increasing every day. However, debt management is still a problem.

Many people don’t use credit cards responsibly or stick to “minimum payments” which leads to high debt accumulation. That said, there are many ways to solve this problem and get rid of the debt as fast as possible:

1. Balance Transfer

If the interest rate on your current credit card account is high, then you can transfer the balance to another credit card that’s offering a lower rate. The new card provider could be your current bank or a different one. However, choosing the second option may give additional benefits.
For instance, many banks offer zero rate period up to 90 days during which you don’t have to pay any interest on the credit card purchases.

2. Personal Loan

The annual percentage rate (APR) or interest rate on most credit cards is quite high (30% to 40%). So, you can take a small personal loan that’s available at a lower interest rate to clear your credit card debt with it.
Even though you will be left with another loan at the end, which is the personal loan, you will have to pay a lower interest.

3. Debt to EMI Conversion

To make the repayment easier, you can also talk to your bank and request them to convert the entire balance into small EMIs. However, it’s important to take into account the processing fee which can be as high as 2% of the balance amount.

4. Avoiding Minimum Payments

Minimum payments allow you to pay only a small portion (about 2% or so) of your monthly bill and avoid penalties and other charges. But this amount is transferred to the next month and increases your debt. Thus, it’s important that you avoid minimum payments as much as possible.