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One of the most accessible features of banks in the modern era of customer services is the credit card offering. There are Platinum, Gold and Silver categories of credit cards available apart from many other credit cards. A sales executive will successfully convince you even if you do not believe in credit facilities and card payments. This is further helped by the fact that it also includes a very easy processing formalism.
However, once you start swiping your cards there is nothing that can stop you from crediting your outstanding credit amount. Very few are known to have control over their credit card usage and number of swipes for different types of purchases.
There is another reason for the incredibly high rates of outstanding dues. The minimum balance figure mentioned in the credit card monthly statement often misleads people. This is for an emergency when you may not have enough cash. However, at the same time, the maximum amount paid from that minimum amount is paid in interest charges and levied government taxes.
So your basic statement for outstanding principal balance at the end of the month remains the same if you do not make any further purchases and expenses.
credit card debt consolidation
It is essential for you to keep a check on your credit card expenses as well as payment due. Your money over a long period attracts higher tax and interest charges. Also, these always come at a higher rate of interest. So the bulk of your money is used only in paying the interest charges. It is a matter of serious consideration when your payments will actually be due.
It can also be a state of mental stress and anguish. However, there are ways to avoid this extra payment and stress on your mind. You can consolidate your credit card debt by taking a loan from the bank where you have an account. It can also be against your fixed deposit or personal loan from the bank. Use it to pay off your credit card dues in full and then pay the bank in easy installments.
Let’s consider the advantages here. Every time you pay the amount as a credit card payment, there are several rounds of monthly deductions in the form of tax and interest payments. Ultimately, there is very little to the original deduction. This is the reason why your principal outstanding amount remains unchanged even after paying for months.
On the other hand, there is an amount based on the annual calculation of the interest rate when you are repaying the loan in the bank. Then, the remaining amount is deducted from the outstanding principal amount.
There are many non-profit debt consolidation companies and organizations that are there to provide the ultimate help that you need in the form of advice and guidance.
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