Sometimes we overspend on a credit card since we do not see actual money changing hands, nor get a sense of our bank balance coming down. This is one of the drawbacks of dealing with virtual money and credit. So, what do you do when you have spent more than what you can pay and not feel trapped in the credit card debt cycle?
There are a number of ways to tackle this situation. Such as converting the outstanding to EMIs (depending on the card you hold and the bank in question) or transfer the balance to a new card, but the most popular form of settling a credit card debt is taking a personal loan. You can ask your bank if they can convert your credit card bill as a personal loan. This will make it easy for you to pay the outstanding balance as EMIs every month and this will save you from the debt trap.
Here is what you need to know about the converting process:
- Visit your respective credit card company and ask them to convert the outstanding as a loan.
- Or you can do something called balance transfer which is nothing but transfer the outstanding balance to a new loan account. You can convert credit card dues to a personal loan with the help of your bank.
Many banks provide this service as even they don't want any defaulters. But whenever you face any situation such as not being able to repay the borrowed amount, then it is wise to give a heads up to your bank as they can help you in this matter better.