Improve Credit

If you are one among those Credit Card users who make part payments towards their Bill, you should be aware of the daunting Interest Rate charged by the Credit Card Companies. Paying only the Minimum Amount Due on your Credit Cardbill will take years to entirely clear the dues. In a couple of years the Interest amount alone would be equivalent to the amount of your original purchases. Hence it is advisable to pay your Credit Card dues either fully or partly in a short period of time.

If you are well aware that you would be making only part payments then you should choose a card with low interest rate, at the time of applying. This would help you to reduce the interest rate burden and pay with convenience. To the maximum extent you should avoid withdrawing money (cash advances) through your Credit Card.

There is a charge called Cash Advance Fees which is charged every time you withdraw money. Moreover you also need to pay a variable Interest rate for the money withdrawn. If you feel that your Credit Card dues have sky-rocketed and beyond your limit, don't panic. You can still clear off your dues if you have a positive mindset and ready to reduce your unwanted expenses. Following are some of the ways that can help you to clear off your Credit Card dues.

Balance Transfer Facility

Apply for a new credit card that offers a great deal on Balance Transfer facility. If you had paid your dues (at least the minimum amount due) in time for your existing Credit Card, chances are there your application for new card would be approved. Once you receive the new card, you can opt in to transfer the outstanding balance from the old card. Balance Transfer facility usually comes with a low interest rate and longer period for repayment. Don't maintain the same old spending habits on the new card.

Debt Consolidation

Debt Consolidation means availing a new loan to clear off your existing dues (multiple). Debt Consolidation Loans offer the convenience of longer repayment tenure and low interest rate. Most often, this type of loan is offered based on a collateral security.

Reduce your Spending pattern

At the time you realize that your Credit Card dues are huge, make sure you stop making more purchases or control your spending limit. Some credit card issuers may reduce your credit limit, if you use 80% of your credit limit within a few days from the time of card delivery. This is a security measure taken by the Card issuer to reduce your liability and to mitigate their risk of losses.

Personal Loan

Personal loan is also a great way to clear off your existing Credit Card dues. Banks charge a lower interest rate on Personal Loans. Unlike the Credit Card Bills, you are aware how much to pay per month. You can set your own repayment period, like 6 months, 12 months, 18 or even 24 months.