The festive season often brings joy, discounts — and, inevitably, credit card bills that look heavier than expected. Between online shopping, travel, and gifts, many end up overspending beyond their monthly budget.
Now, with the post-festive bills landing in your inbox, it’s time to act smartly. If you don’t manage repayments wisely, interest rates as high as 40% per annum can quickly turn your celebrations into financial stress.
Here’s a five-point guide on how to clear your dues without paying interest and keep your credit score healthy.
1️⃣ Pay the Full Amount Before the Due Date
The simplest and most effective way to avoid interest is to clear your entire outstanding balance by the due date.
If you only pay the “minimum amount due,” the remaining balance attracts daily interest charges, and you lose the interest-free period for the next billing cycle.
💡 Pro Tip: Set up auto-debit for the full amount due to ensure timely payments and avoid late fees.
2️⃣ Convert Big Purchases Into EMIs (Before the Bill Is Generated)
If you’ve made large-ticket purchases during the festive season, consider converting them into low-cost EMIs.
Most banks allow conversion to EMIs before the statement is generated, at lower interest rates (12–18%) compared to regular revolving credit charges (36–42%).
Check your net banking app or call customer care — this helps you spread payments without hurting your monthly budget.
💡 Tip: Choose shorter EMI tenures (6–9 months) to minimize total interest outgo.
3️⃣ Use the Balance Transfer Option
If you’re unable to pay off your dues in one go, consider a balance transfer to another credit card offering lower or zero interest for a limited time (usually 3–6 months).
Banks and fintechs often launch such offers after festive periods.
This allows you to shift your debt and buy time to clear it without compounding interest.
💡 Tip: Use this option only if you’re confident about repaying within the promotional window.
4️⃣ Prioritize High-Interest Cards First
If you hold multiple credit cards, list your dues by interest rate and repayment date. Start by paying off the one with the highest interest first (the “avalanche method”).
This saves you the maximum amount in interest over time. Simultaneously, keep paying at least the minimum due on other cards to avoid late fees and penalties.
💡 Tip: Avoid cash withdrawals on credit cards — they attract immediate interest without a grace period.
5️⃣ Use Short-Term Credit Options Wisely
If you’re short on liquidity, consider interest-free alternatives instead of letting credit card dues roll over.
Some safe options include:
Pay Later Apps (with zero interest up to 30 days)
Salary Advance Loans (small-ticket, low-cost loans)
Personal Loans from Banks or NBFCs with fixed tenure and lower interest
These are far cheaper than revolving your card balance — which can cost you up to 3.5% per month in finance charges.
💡 Pro Tip: Avoid borrowing from multiple sources at once — it can harm your credit score.
Bonus: Keep Your Credit Score Intact
A high credit card balance can hurt your CIBIL score even if you make timely payments. Keep your credit utilization ratio below 30% of your total limit.
Example: If your total limit is ₹1 lakh, try to stay under ₹30,000 of outstanding usage at any point.
This signals good financial discipline to lenders.
In Short: Your Post-Festive Repayment Checklist
| Step | Action | Result |
|---|---|---|
| 1 | Pay full bill before due date | No interest or penalties |
| 2 | Convert large purchases to EMIs | Manageable monthly budget |
| 3 | Try balance transfer offers | Zero/low interest grace period |
| 4 | Pay off high-interest cards first | Reduced overall interest cost |
| 5 | Use alternate credit sources | Avoid revolving credit trap |
Frequently Asked Questions (FAQ)
Q1: What happens if I pay only the minimum amount due?
You avoid late fees but pay high interest (up to 42% p.a.) on the remaining balance.
Q2: Can I negotiate interest rates with my bank?
Yes, many banks offer temporary relief or EMI conversion if you reach out before defaulting.
Q3: What is the interest-free period on credit cards?
Typically 45–55 days, depending on the billing cycle — but only if you pay your previous bill in full.
Q4: Does converting to EMI affect credit score?
No, as long as payments are on time — in fact, it shows responsible debt management.
Q5: Should I close my credit card after repayment?
Not necessarily. Keeping older cards helps your credit age, which benefits your CIBIL score.
Published on : 10th November
Published by : SMITA
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Source credit : Written by Personal Finance Desk — NDTV Profit / Personal Finance Division