Post-Festive Credit Card Bills: How To Clear Dues Without Paying Interest? Here's Five-Point Guide

From Dussehra to Diwali, India's festival season means weeks of shopping, gifting and eating out. For many, credit cards are the preferred payment option, offering instant spending power and attractive reward points.

But once the festive season and the celebrations are over, the reality of a heavy credit card bill sets in. At an interest rate charged by banks that can cross 30% to 42% annually if the outstanding balance is not cleared, even a small sum can soon snowball into debt.

The good news is that, with a little planning and some timely action, it’s actually possible to pay off festive credit card spending without paying interest. Here's a five-point guide:

The easiest way to avoid interest is to pay the entire outstanding amount before the due date. But many cardholders make the mistake of believing that paying the minimum amount due keeps them safe.

Actually, once a balance remains unpaid, the entire outstanding amount attracts high interest. New purchases made on the card also attract interest. Clearing the full bill on time maintains interest-free credit days on future transactions and protects credit scores.

Balance transfer helps, especially in case it gets difficult to make a full payment at once. Some banks allow their customers to transfer the outstanding dues from one credit card to another.

The primary advantage of a credit card balance transfer is that it gives you additional time to repay, often up to 45 days, or allows you to benefit from a lower interest rate offered by the new card.

Many banks and credit card issuers allow converting large purchases into EMIs. This option is especially helpful for big-ticket festive spending on electronics, home appliances or jewellery.

Before opting for an EMI conversion, it’s important to check processing fees and the repayment schedule. A short-term EMI plan, aligned with monthly income, can prevent financial strain.

If all of the above options are not possible, then a short-term personal loan may be cheaper than spiralling credit card interest. Personal loan rates vary but are invariably below credit card rollover charges. This approach turns high-interest revolving debt into fixed monthly repayments.

Festive overspending often comes from unclear tracking. Creating a post-festive repayment plan, such as listing bills, allocating repayment amounts and reducing discretionary spend, ensures bills are cleared on time.

A large festive credit card bill can feel overwhelming, but interest doesn’t have to be a part of it. Paying the full amount when possible, using balance transfers wisely, opting for zero-cost EMIs and sticking to a clear repayment budget can help consumers become debt-free without paying an extra rupee in interest.