How to manage your Credit Cards smartly during COVID-19 Crisisby Naveen A. Outreach Agency
The COVID-19 pandemic is wreaking havoc on the financial requirements of the people in one way or another. Credit cards act as a resort in these uncertain times, as it helps to maintain social distance. The advent of the virus has slowed down the online spending, though a large portion of the population in India enjoys the benefits of the cards. Hence, managing credit card payments during this pandemic appears as a challenge for Individuals.
With a proper plan, you can manage your credit cards even during this COVID-19 crisis. Here are some tips that can help you with that.
Use a single credit card
Even if you own multiple cards, try to use only one credit card for payments during this financial slowdown. It is also advisable to close all other cards as it can save you from paying the annual charges and needless expenses. You can also check if your credit card has the facility of credit card balance transfer so that you can transfer other balances to that card.
Prefer online bill payments
Social Distancing is pivotal to control the spread of the virus. Hence, use Mobile or Net Banking to pay your credit card bills instead of visiting the bank’s branch. For this, you can also give instructions to the bank on deducting the bill amount from your savings account every month. The cash and cheque payments of the credit card bills are mostly chargeable. So, this way, you can also save some money.
More Online Transactions
In these uncertain times, doing more online transactions can not only help curb the spread of the virus but also can help you with using your credit card smartly. Online stores are gaining more popularity at these times. It is more convenient in this situation to make use of these cards to purchase the necessary items online and enjoy the discounts the stores provide you.
You can also cut down your monthly expenses through these online transactions using your card smartly. The more wisely you cut down the unnecessary expenses, the more you can cut down the bills.
Use EMI’s and Reward Points
Most of the credit cards have the option of EMI transactions these days. Convert the bills into EMI’s as this can help you with overcoming the burden of paying huge bills at the end of the month. Credit cards can also be effectively used by utilizing the reward points. This mode of a transaction can grant you some reward points. Use these points wisely to cut down the credit card expenses later.
Make full payment of your credit card bills
If you avoid making the full bill payment, the banks will charge extra interest on the remaining amount. To avoid that, make sure that you pay the full amount of the bill instead of paying the minimum due amount. Spare the option of paying the minimum due amount for a situation where you don’t have the budget to pay the full amount.
To save yourself from the burden of huge bills, you can also set a transaction limit for your card. But make sure you never cross this transaction limit.
As you are facing a financial slowdown, you all need to have a plan on how to limit the expenses. Proper planning and implementation can help you use your credit cards smartly and thus limiting the unnecessary debts.
Created on May 20th 2020 05:56. Viewed 224 times.