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5 Simple Ways to Pay Off Credit Card Debt Faster

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April 11, 2023


What’s Inside

Credit cards are helpful financial instruments to navigate modern-day expenses. However, they can result in significant debt if not handled responsibly. Concerns regarding how to pay off credit card debts are one of the primary issues that most people face with these tools. This is especially true for those without secured credit cards involving an upfront payment.

How to Pay Off Credit Card Debt

Adhering to a regular payment schedule is the most straightforward way to eliminate such debts. However, there are other effective strategies that anybody can leverage.

Split Your Instalments in Two

Interest on credit card debt works a little differently. In short, your rates depend on your average daily balance. For instance, say you owe 4,000 INR and can afford a monthly instalment of 500 INR. If you pay every 25 days in a 30-day cycle, your average daily balance will amount to 3,900 INR.

However, if you split that sum into 250 INR & make dual payments: First on the 10th & Next on the 25th, the daily balance will be 3,775 INR. So, it's best to split your instalments over two days.

Opt for a Personal Loan

Personal loans are often overlooked when people discuss how to pay off credit card debts. However, they are one of the most effective ways to navigate such an issue, especially if the remaining interest on your card is significantly high. Avoid going for the maximum limit and only borrow the required amount. This will help you stave off additional financial burdens and lower your EMIs.

Utilise the Balance Transfer Facility

Those with a relatively good credit score can leverage the balance transfer facility. This involves putting off the remaining balance on a new credit card with a zero introductory interest rate. However, there are two conditions here. First, the initial interest rate will last between 12 and 18 months. So, it's critical to prioritise lowering the primary debt in that period. Second, you can only transfer the balance to a credit card from a different issuer.

Leverage the Interest-Free Holiday Period

While this isn't a direct tip on how to pay off credit card debts, it will help you avoid accruing a higher interest on your remaining balance. Based on your billing cycle and purchasing date, you will get approximately 50 days without interest charges. This can help those with severe financial issues since making purchases during this period will not come with any interest whatsoever.

Prioritise the Cards with Higher Interests

Being aware of the minimum payments you need to make while being familiar with the interest rates can help immensely. For example, assume you have three cards with varying balance amounts. The first requires a minimum instalment of 600 INR, the second needs 400 INR, while the third only involves 200 INR. Now, you can only afford a total monthly payment of 1,500 INR. In this case, you have an additional 300 INR. Directing that amount to the card with the highest interest rate will lower the final sum over time.


If the tips mentioned above on paying off credit card debts seem a little complex, you can resort to the most straightforward one: personal loans. Fi Money can help in this regard — with instant access to up to 5,00,000 INR, the approval and disbursal process is entirely digital. You can even set up automated in-app payments to avoid late EMI charges. Register on the app today to eliminate your credit card debts.

Frequently Asked Questions

1. How much credit card debt is normal?

Keeping your balance between 1% and 10% of the credit limit is best. Values between 11% to 30% aren't too bad either. However, avoid going beyond 30% as that is a significant debt to pay off.

2. What happens if I don't pay my credit card for 5 years?

Lenders typically demand the minimum due amount within 6 months. Your account will be deactivated if you do not pay for 6 months or more. Further actions can be taken against you, such as deploying debt collection agents. In the long term, this will reflect poorly on your credit score.

3. What is the fastest way to pay credit card bill?

Paying online is the fastest way to process your transaction, and can be done through any of the methods mentioned here.

4. Is it good to pay off credit card debt early?

There are several benefits to paying your credit card before the due date, such as the potential to enhance your credit score, better manage your finances, and reduce the likelihood of accruing daily interest charges. By consistently paying off your balance in full and on time, you can avoid any interest on your purchases.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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