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How to Clear Your Credit Card Debt: Tips and Tricks

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December 21, 2022


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Given the large variety of credit cards supplied by banks today, you can now use your credit card to pay for everything (including groceries).

However, when credit cards aren't used how they should be — they become a month-end liability with a hefty balance to settle. One easy fix? Educate people about debt traps. Young adults must be taught basic credit card etiquette in schools and colleges.

What Is a Credit Card Debt Loop?

A credit card debt loop is a situation where you excessively spend more while having a credit card. It results in a big credit card statement exceeding your monthly budget. Eventually, money may have to be borrowed to pay off the card debt. And that loan may result in a debt loop.

Ways To Pay Off Your Credit Card Bills Easily

Here are some tips & tricks to help you navigate credit card debt & clear your dues on time:

Tip 1: Maintain Notes on Which Debts Are To Be Paid-Off First

Break your credit card debt amount into smaller pieces rather than looking at it all at once, which would be a lot to do. Classification helps. If you have many credit cards, paying off the highest-priority account first is best. How can you tell which bill should be paid first now? It is determined by the card's interest rate and the amount of outstanding debt.

Tip 2: Learn To Prioritise Cards With Higher Interest Rates

Pay the credit card statement with the higher interest rate first. Not the one with the bigger balance. It will prevent you from paying a sizable interest sum in the upcoming months. Please reconsider if you believe paying only the minimum amount required will allow you to put money aside for the time being. It could have an impact on your credit report and score. Banks monitor your spending, and if they notice that you are careless with your money, they could stop your credit card.

Tip 3: Pay The Bill With The Least Balance

You may switch to the card with the lowest balance you owe after paying off the credit card payment with a higher interest rate. Whichever bills have piled up and on which card, determine this entirely. However, this technique may only work some of the time.

The card with the highest balance may occasionally have the bill with the lowest amount. You are paying off two significant bills in this manner. After paying off the credit card with the highest interest rate, you can go on to the one with the lowest outstanding balance. Paying this gives you the mental lift to finish paying the remainder of the expenses.

Tip 4: Get a Credit Card With a Low APR (Annual Percentage Rate)

Unlike the US, there are no lifetime 0% APR credit cards in India — most have 18-21 month limits. Low APR cards are employed for balance transfers on credit cards. The cardholder may settle all outstanding balances within the 0% interest term. However, some cards offer a low-interest rate.

In this situation, you can hold two credit cards and transfer the card's balance with the higher interest rate to the card with the lower interest rate. You avoid paying a significant amount of interest with this method.

Tip 5: Convert Outstanding Bills to EMIs

Though rarely done, you can go to your bank branch and ask for your unpaid credit card debt to be converted into EMIs. Most banks impose a nominal interest rate for EMIs with a specific tenure option. These EMIs can be paid in full at the bank branch by having the bank's automatic payment system deduct the funds from your account or with a cheque.

Tip 6: Getting Loans

As a last resort, you might apply for a personal loan if you have a good credit history — to pay off your credit card debt immediately. You can become debt-free and pay less interest if you do this. Interest rates on personal loans are generally lower than those on credit cards. Additionally, depending on the term, the monthly EMI will only be a small sum.


Clearing your credit card debt can seem like an uphill task, but with the right approach, it's possible. You can become debt-free and improve your credit score by prioritising your payments, keeping track of your debts, etc. Remember, responsible credit card usage is vital to avoiding a debt loop.

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Frequently Asked Questions

1. How to clear the credit card EMI due amount?

You can contact your bank's branch manager and clear the credit card EMI amount by paying via a cheque or a demand draft.

2. How to clear old credit card dues?

Keep tabs on your old credit card dues, prioritise, and decide on a sequence in which you can pay the outstanding debts.

3. What is credit card forgiveness?

Credit card forgiveness, also known as debt forgiveness or debt settlement, is when a credit card issuer or creditor agrees to forgive or reduce the outstanding balance owed by a borrower. It typically occurs when the borrower faces financial hardship and cannot repay the total amount.

4. Can credit card debt be forgiven after 7 years?

In India, credit card debt is not automatically forgiven after 7 years. The outstanding credit card debt remains valid and enforceable unless it is repaid or settled with the credit card issuer according to the agreed-upon terms and conditions.


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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