How to Manage Credit Cards After Salary Deductions

Last Updated : May 11, 2020, 7:38 p.m.

After so many days of lockdown, there are some companies that are facing financial losses and thus they are cutting off their employee’s salaries. So for a normal employee, it is really difficult to manage expenses like rent, credit card bills, food expenses, and many others in a low salary. Therefore, it is necessary for you to know the tips and tricks to manage credit cards after salary deductions. Nowadays, credit cards are the lender of the last resort for the employees who are getting deducted salaries during the lockdown. However, you have to manage the credit card bills as well although your salary is cut off. So, you must follow some easy habits that will help you to survive the lockdown period using your credit card.

Manage Credit Card After Salary Cut Off

There are some simple habits that you must opt for to manage the credit card if you are getting a low salary.

Pay the Minimum Amount Due

The bank charges a certain amount of interest if your credit card bill is unpaid. So, you must try to pay the minimum amount due of the credit card bill and it will help you maintain your Cibil Score . You can even convert the transactions into EMIs and it would be convenient for you to clear the credit card bills. Usually, some banks have the minimum transaction limit of ₹2500 to be converted into EMIs.

Use the 3 Months Moratorium Leverage

The Reserve Bank of India has given certain guidelines related to the extension of payment of the credit card bills. You can postpone the credit card bill for 3 months and it will not affect your Cibil Score. It will help you to manage the day to day expenses in a low salary as you can save the credit card bill expenses.

You can request the respective bank of your credit card and ask for the 3 months moratorium period.

Buy Only Essential Goods

Try to buy only essential goods from various online portals. Some online portals like Grofers and BigBasket have great deals for different credit cards. So, you can use your credit card for making the payment and earn heavy discounts and deals. As a result, your credit card bill will be low and you can manage credit card after salary deductions.

Check the Offers on Different Online Website

There are many online websites for buying essential goods and pharmacy products. So, before buying anything from the website, you must check the prevailing offers on the credit card. Pharmacy Websites like PharmEasy, Apollo Pharmacy, Netmeds, 1mg, Medlife and many others have great deals on different credit cards.

Similarly, essential goods websites like Grofers and BigBasket have great offers on credit cards. So, make the best use of credit cards for earning the discount and managing it even after a salary cut off.

Do a Balance Transfer

If you are using multiple credit cards then you can do a balance transfer from one credit card to another. Do a balance transfer from such a bank that charges a low rate of interest on the outstanding amount of the credit card.

Pay Credit Cards Bills Using Another Credit Card

If in case you have a pending balance on Credit Card 1 and a high credit limit on the Credit Card 2 then you can pay the bill of the Credit Card 1 using the Credit Card 2. It will enable you to avoid paying the interest on the outstanding amount of the Credit Card 1.

Utilize Your Reward Points

If you are using a credit card for many years then you will have a lot of reward points into your account. So you must utilize those reward points for shopping and paying credit card bills. It will help you to save some extra bucks allows managing other expenses after salary deductions.

Avoid Unnecessary Expenses

Try to buy only essential goods and avoid luxurious expenses from a credit card because it will increase the amount of your credit card bill and you will have to face some difficulty in clearing it in a low salary.

Avoid Cash Withdrawals from the Credit Card

You must go for a cashless payment or an online payment using your card and avoid withdrawing cash from the ATM machines using your credit card. Cash withdrawal from credit card includes certain withdrawal fees and it will increase the amount of your credit card bill. So, it will be difficult to manage credit cards after salary deductions.

Use Your Credit Card at the Refilling Stations

There are some credit cards that have the offer of a fuel surcharge waiver. So, instead of using the cash for the payment at the refilling stations, you must use your credit card and earn a fuel surcharge waiver.

Conclusion

It is a common saying that little drops make a mighty ocean so the above deduction of expenses will help you to manage credit cards after salary deductions. You must follow the above-mentioned habits and by applying them in your day to day habits, you can manage your lifestyle in a low salary during the lockdown.