How to break free from costly credit card debt

Carrying unpaid credit card balances can delay financial freedom because interest continues to accumulate. Raj P Narayanam, executive chairman of Zaggle, said cardholders should avoid carrying a balance, pay the full outstanding amount each month and stop using the card if they are already in debt.

Paying only the minimum due may prevent an account from becoming overdue, but the remaining balance can take longer to clear and continue attracting interest, subject to the card’s terms. Borrowers with multiple dues can list balances and interest rates, then prioritise the highest-interest debt while making required payments on other accounts.

If full repayment is not immediately possible, cardholders can ask the issuer about repayment plans or converting the balance into an EMI. They should compare the interest rate, processing fees and total repayment amount before choosing an option. The article also advises avoiding fresh spending on the card until the debt is cleared.