The use of plastic money in India is at its high altitude due to increased disposable income and the growth of IT and retail sector. The Young Indians with the increased level of income has taken plastic money as a tech savvy and smart way of spending. Some of them has multiple cards. Apart from regular shopping,they pay the electricity bill and all other sundry expenses using the cards. However, the plastic money charges the highest rate of interest in the organised loan market. And the repayment of plastic money debt is not as easier as it seems. This article focuses on how to play safe with plastic money and avail free credit.
When you have multiple credit cards, you can transfer the balance due on one card to the other. In simple terms, the amount due on one card can be transferred onto other card without affecting your financial condition. For this balance transfer, you will have to pay a minimum amount due (in general 5% plus processing fee) to the concerned bank offering you the facility. This price is not that much hefty when you are in need of urgent cash for high end expenses like purchase of jeweleries, costly electronic goods or financing the cost of wedding. By the method of balance transfer, you can easily avail interest free period for next three months.
The total time you can avail as the interest free credit in case of balance transfer is five months( including the general grace period). This saves a lot of money and and offers you the peace of mind. The second way to get rid of credit card debt piling is to repay the amount within the grace period. At the time of purchase, you should cut your coat according to your cloth. Thoroughly analyse your monthly incomings before performing any
plastic money purchase. If you can repay the whole amount without disturbing your budget, try to pay it with in the grace period. This makes your payment interest free.
Credit card companies always look for a default on the user's side. This default is the unwritten source of profit for the financial organisations dealing with plastic money. If there is default, the rate of interest and the payable amount compounds. Another thing associated with the
credit card bill payment is the minimum monthly installment. If you can not repay the whole amount with in the grace period, never forget to pay the minimum monthly amount. By following these above three steps, you can easily and smartly handle your plastic money expenditure.
