Credit card Debt is Killing Me #shorts

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On the first day of my job, the new joinees were given a presentation by 4 different banks on the benefits and perks of their debit and credit cards. While it is understandable for the sales guys to not talk about the negative aspects of credit cards, I think it is essential for companies and schools to teach us about how credit cards work.

I was surprised to know that even my freshly minted IIM MBA colleagues did not fully understand how credit cards worked until they made some mistakes along the way. I was fortunate enough to learn from their mistakes and avoid them. Last year, credit card companies made a whopping $76 Bn interest income, meaning the 40% interest they charge if you are unable to repay them every month.

If you happen to be one of the contributors to that harrowing figure, then let me introduce to you “Credit Card Balance Transfer”. It's a concept where you transfer the outstanding credit card balance from one credit card to another which has 0% or a reduced interest rate for a certain period.

Some of the Indian banks which offer this are
????Axis Bank- 0% for 3 months
????SBI - 0-1.7% for 6 months
????Standard chartered bank- 0.99% for 6 months
????Punjab National Bank- 0.99% for 6 months

Once you have exhausted this option you can convert your outstanding amount to a personal loan which has an interest rate of 14-16% which is far lesser than the 40% interest rate of credit cards. Please share this with someone who is in credit card debt and spread the word.

#financewithsharan #finance #sharan