Choose this alternative if you can pay a higher price for your dues. Additionally, make sure you don’t get into the habit of paying your dues via EMIs.
Credit cards are a convenient mode of payment for those who have cash scarcity. Credit cards help to make purchases and other payments when you are not having enough cash. However, credit card users often fail to make payments for their credit card dues before or after the payment date. This leads to higher rates on the same amount as well as late charges. Even if you pay the minimum amount to avoid late fee charges, you will still end up paying the interest amount on the unpaid amount.
Experts advise clearing all the payable amounts before the due date as the rate of interest on the same would be more than 36% per annum. On the other hand, if you are not in a position to clear the entire credit bill amount or the big purchases you can convert the same into Equated Monthly Instalments (EMI)
Many credit card issuers offer the option of converting the amount into EMI of Rs 2500 to Rs 5000. Not just that you can convert the whole amount into EMIs, but for this, you need to contact your card issuer. Converting the whole amount reduces your financial stress and you can pay the amount in small every month over a specific duration. But the EMI option comes at a higher interest rate and it could enhance your monthly payment tenure. At the same time, calculate the durations and how much EMI you can afford every single month. And accordingly, you can decide the tenure of EMIs.