A credit card is a convenient tool in the hands of a financially literate user. Especially if the bank offers an impressive interest-free period and accrues bonuses. In the latter case, a credit card allows you not only not to overpay, but also to save on everyday purchases.
But what if you missed the interest-free period and can now only pay regularly accrued interest as part of the mandatory payment? Let's talk about how to pay off a credit card debt with the least financial losses. We'll share life hacks and tell you about banking products that can help you.
Why a credit card is no longer profitable
Banks offer different terms for credit cards. Most of them have an interest-free (grace) period. The condition is simple: you spend money from the credit card and can repay the debt without interest for a certain period of time. If you miss this deadline or do not fulfill the accompanying requirements (for example, do not make a mandatory payment during the grace period), then you pay the debt + interest. And often for the entire term.
The card may cease to be profitable for other reasons:
You made a mistake because you didn’t read the terms of the armenia mobile database agreement – for example, you bought goods in a category that is not covered by the interest-free period.
Used additional services - for example, connected paid bonus packages or notifications.
Withdrew cash from an ATM, while the bank provided a high commission for such transactions and did not extend a grace period to them.
Also, a credit card may cease to be profitable due to insufficient prudence of its owner. For example, in a situation where he decided to stop making monthly payments or simply forgot about the credit card debt. At the same time, he ignored reminders in notifications and calls from the bank. As a result, the creditor charged interest for a long time and the debt increased significantly. And it is no longer possible to pay it off on the usual schedule.
Tip: Use the bank's mobile app to track your current credit card debt. This will allow you to promptly check the amount of the required payment and the duration of the interest-free period.