What to Do When You're Unable to Pay Your Credit Card Bill?

A credit card unlocks several benefits, like shopping, reward points, exclusive offers, milestone benefits, movie deals, etc. However, you must pay all your credit bills on time as your credit score may take a hit.

This blog gives you a comprehensive idea of what you should do if you are struggling to pay your credit card bills on time. Keep reading!

What to Do If You Cannot Pay Your Credit Card Bill on Time?

Here are 4 things you can do if you are unable to pay your credit card bills:

1. Pay the Minimum Due Amount

If you are unable to pay off the entire amount, try to pay at least the minimum amount due. This will only be a fraction of your outstanding credit card bill. It keeps your card operational while helping you avoid late payment fees. Paying the minimum due amount will also keep your credit score from getting negatively affected.

2. Reduce Your Credit Card Usage

If you keep struggling with your credit card bills, it may be time to limit your credit card usage. Plan your credit card payments if you have many credit cards. Also, focus on clearing your dues before making further purchases with your remaining credit cards.

3. Choose Balance Transfer

Balance transfer is a smart debt management strategy that helps you move the existing credit card debt to a new card with a lower interest rate.

4. Get a Personal Loan to Pay off Your Debt

A Personal Loan can be last resort for paying off your credit card bills.. Using a Personal Loan will help you reduce overall debt and close your credit card bill quickly. Ensure that you plan your EMIs using an online calcultor and pay your Personal Loan EMIs on time.

What Happens If You Don't Pay Your Credit Card Bills on Time?

If you don't pay your credit card bills on time, you will be charged a late fee. Additionally, you have to pay high-interest rates. Since your credit score will also take a hit, it will be difficult for you to get your loan requests approved in the future.

Here’s a quick glance at the consequences of not paying credit card bills on time:

1. If You Delay Your Payment by 30 Days

• Your credit score will not be affected much by a single delayed payment. However, if it happens repetitively, your credit score will go down.

2. If You Delay Your Payment by 60 Days

• This late payment can significantly affect your credit score.
• It will be recorded in your credit report.

3. If You Delay Your Payment by 90 Days

• It will be noted in your credit report.
• This late payment will likely be classified as a Non-Performing Asset (NPA) by the lender.

4. If You Delay Your Payment by 120 Days

• Your credit score will be severely affected, making it drop further.
• It will be recorded in your credit report.
• This late payment will be classified as “collection”.

Also Read: Major Benefits of Using Personal Loan to Pay Credit Card Debt

How to Avoid Large Credit Card Debt?

You may often feel like your credit card bill is a struggle to pay and get caught in a debt trap. To steer clear of payment defaults and interest accruals, make sure to:

1. Pay the High-interest Rate Loans on Priority

If you have several credit cards and loans, list down all your debt and determine which is the most expensive. Pay off that loan (with the highest rate of interest) with every surplus cash you have available. Now, with a reduced interest burden, you can pay off the rest eventually.

2. Convert Your Payments to EMIs

Credit cards offer EMI options which you can opt for to pay off your outstanding debt. Often, these EMIs offer a lower interest rate and a longer tenure. With more time, you can plan your repayments and proceed to pay off your dues. As a result, you can reduce a considerable amount of the total outstanding debt value.

3. Stick to a Budget

If you are on a financial crunch, consider creating a budget and limit your credit card use accordingly. Avoid unnecessary expenses, whether small or large and clear your outstanding dues.

To Conclude

Credit card debt is a risk and may lead to unpleasant circumstances if not handled diligently. If you use a well-organised debt management system, you may be able to pay your monthly EMIs/credit card bills on time. However, if you are still unable to pay your credit card bill, make sure to at least cover the minimum amount payable.

Frequently Asked Questions

1. What will happen if I don’t pay my Poonawalla Fincorp co-branded credit card bill?

If you do not clear your Poonawalla Fincorp IndusInd Bank eLITE RuPay credit card debt on time, you will be liable to pay late payment charges and other interest charges on the outstanding amount.

2. Can my credit card provider give me relief with the bill payments?

Yes! You can speak to your credit card provider and chalk out alternatives to repaying your credit card bill.

3. Will unpaid credit card bills stain my credit record forever?

Unpaid bills/defaults will reflect on your credit report for 7 years.

4. How to apply for a Poonawalla Fincorp IndusInd Bank eLITE RuPay Credit Card?

You can apply for Poonawalla Fincorp IndusInd Bank eLITE RuPay Credit Card using two methods mentioned below:

1. By visiting the Poonawalla Fincorp IndusInd Bank eLITE RuPay Credit Card page and clicking on ‘Apply Now’.

OR

2. By visiting the IndusInd Bank website.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply