Increased credit card spending: how to avoid falling into the debt trap?

Amid the coronavirus lockdown, credit card spending fell 51% from March to April, according to an investigation by CRED, a digital platform. The investigation said the drop in card spending was due to the suspension of operations in both offline and online retail markets during the lockdown.
With the lockdown lifted, major banks / lenders saw credit card spending return to pre-lockdown levels. That said, industry experts say that with wage cuts and job losses in the industry, people have turned to instant financial relief. However, even though credit cards offer instant credit, using it in such times is risky.
What you need to understand with a credit card is that heavy use of your credit card can drag you into a debt spiral. It will ruin your budget and also eat away at all your future income until the debt is settled. Therefore, using a credit card at such difficult times is not advisable at all, however, if you must use your credit card, only do so if you have the financial backing to pay the contributions. .
Using a credit card to fund daily expenses is one of the most common ways a cardholder can fall into the trap of revolving credit and long-term debt. Also, if you are using your credit card in an emergency, never use it to withdraw money as it has several side effects. There are high fees for using a credit card for cash withdrawals. For example, in addition to interest, the cardholder will have to pay cash advance fees, processing fees, and finance charges. Therefore, it is not a preferable option.
Credit cards are known to offer an interest-free period after which they attract high interest rates of up to 36-40 percent per year compared to a personal loan which has a low rate. much lower interest of 11 to 24 percent. Therefore, to get out of credit card debt, you can take out a personal loan with much less interest.
Likewise, if you already have credit card dues that you cannot pay, you can liquidate your investment to pay for that. It might sound a little strange, but none of your investments can match the credit card debt that attracts 36-40% interest. Hence, you can get rid of low income investments or break term deposits to get rid of credit card debt.
Credit cards are the best options for instant credit that is accessible anytime anywhere in the country without any approval or documentation. However, not being able to pay dues on time and going into debt affects your credit report.
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