TheBetterWarrior

Warriors, if you have a credit card payment pending and you have a weekend party.

What would you do first, pay the bill or spend at the weekend party?

I am sure you must have answered, paying the bill is the priority. Logically, that is the correct course of action. But humans are emotional creatures, and we are creatures of habit. 

I ask you, do you prioritise your credit card payment?

Or do you prioritise spending your hard-earned money as soon as you get your salary?

Because actions have consequences, and our banks are here to remind us of the consequences.

Consequences of ignoring your credit card payment

Incurring Late Fees

A credit card has great deals and various offers but also plenty of late fees.

Several banks have different late fees associated with late credit card payments. 

SBI Credit Card	₹400 for a Minimum Outstanding Balance of ₹501	₹1300 for a Minimum Outstanding Balance of above ₹50000.
HDFC Credit Card	₹100 for a Minimum Outstanding Balance of ₹100	₹950 for a Minimum Outstanding Balance of above ₹25000.
ICICI Credit Card	₹100 for a Minimum Outstanding Balance of ₹101	₹750 for a Minimum Outstanding Balance of above ₹10000.
Axis Bank Credit Card	₹100 for a Minimum Outstanding Balance of ₹301	₹1200 for a Minimum Outstanding Balance of above ₹50000.
RBL Credit Card	₹50 or 15% of the Due Amount	₹1000 or 15% of the Due Amount
HSBC Credit Card	₹250 or 100% of the Due Amount	₹1200 or 100% of the Due Amount
Standard Chartered Credit Card	₹100 for a Minimum Outstanding Balance of ₹101	₹800 for a Minimum Outstanding Balance of above ₹15000.
Citibank Credit Card	₹450 for a Minimum Outstanding Balance of ₹1001	₹950 for a Minimum Outstanding Balance of above ₹10000.

Please check with your bank how much they charge you for late fees.

Also, one important thing to remember is that late fees changes when your amount due increases.

If your outstanding is low, your late fee is less. But if your outstanding is more, banks will charge you higher late fees.

This is a loop which will keep increasing your outstanding amount until you clear the outstanding payment in full.

Incurring Interest

Missing your credit card payment, and thinking to yourself, “I will pay it next month”, causes a lot of harm.

Miss one payment and your start incurring what is known as interest.

We want interest when we are depositing money into our account, Fixed deposits, recurring deposits and so on.

But incurring interest on your credit card payment means increasing the amount you need to pay to your bank, losing more money. 

Hence, increasing your burden and complicating your life.

Please check with your bank, about the interest % they may charge you if you miss one payment and how much your outstanding amount shall increase.

Incurring Stress

Every one of us has faced it. Money brings happiness when used as a tool.

Money brings stress when used irresponsibly.

Doesn’t matter if you are a rich kid, a middle-class person or come from an economically weak background. Money will stress you if you don’t manage it. 

Imagine, your credit card payment is late for a certain amount. You figure it’s okay. I will pay the amount every month slowly and then clear the outstanding amount.

Ex: ₹13000, used a credit card bill. You realised it couldn’t be converted to EMI.

Then you decide to pay 1000 or 2000 each month until it’s clear.

And so the game begins. 

Six months later, you realise, the amount never decreased, rather it kept on increasing and now you have paid more than the credit you took.

 And you will also need to pay more than the credit you took and the amount you paid.

That my warriors are the famous curses of interest and late fees.

Don’t ignore it, stay vigilant, and decrease unnecessary stress.

Can your credit card payment issue be solved?

So, how wise will you be? 

Will you still be reckless with your credit card payments or will you do something about it? Something, that shall set you free from this hell loop you are in or may be heading to.

There are surely 5 things you can do:

• Clear your credit card payment as soon as possible.

• Keep a check on your monthly statement.

• Check your billing date and make purchases accordingly so that you can avail of the grace period.

• Check with your bank if a one-time settlement is possible.

 (ONLY RECOMMEND IF YOU ARE AGED or THE OUTSTANDING AMOUNT IS TREMENDOUS.)

Please note one-time settlement affects your CIBIL score drastically.

• Pay the minimum amount, and clear the credit card payment in the same month.

Problems arise for all of us, but we mustn’t create unnecessary problems for ourselves. 

We need to plan and take responsibility for certain things so we don’t complicate our life. Our habits play a huge role in our lives.

Why create stress for yourself when you can create peace for yourself?

Stay Strong Brothers and Sisters!

Make your life easy, by clearing your credit card payment!