When you thought the best way to handle your purchases is only by buying a credit card, you did not realize what kind of impact this plastic cash can create on your finances.
A lot of things need to be kept in mind while you sign up or are possessing a credit card. It is very important that you pay off the balance on the card before the month end so that your interest rates and bank charges can be considerably reduced. Do not stick completely to maintain the minimum balance on your card. If you try to maintain it that way then, a balance of Rs 5000 will be rolled for 7 years.
It has been observed in a lot of cases that people have opted for a credit card to repay their debts especially if they have the burden of a personal loan. This practice is generally not advised. The personal loan carries a comparatively lesser rate of interest than compared to a credit card, which has exorbitant rates of interest. So, getting into a another loan or any kind of debt is not advised.
Try to liquidate assets and prepay a major portion of the amount. By this not only you reduce the debt burden but also, try not to get in to any other type of debt. Analyze the pre payment charges and accumulate funds accordingly.