In 2016, when the government took the bold step of demonetization, plastic money emerged to be the hero. During that difficult period, people had to just swipe their credit or debit cards to buy anything they wanted. At a time when people were losing patience and having cash was a luxury, credit and debit cards offered quite a respite.
With time, credit cards have changed the shopping habits of buyers drastically. Gone are the days when consumers used to worry about affordability of products and services. With the introduction of credit cards, their life has been made easy. They can buy products and avail services whenever they want to and pay later. Hence, the introduction of credit cards is looked upon as a huge turning point in the world of economics.
Credit cards come loaded with features and benefits like reward points, AirMiles, and cashback offers. Cardholders can collect reward points and redeem them to get amazing gifts from the bank's catalogue. AirMiles can be used to get discount on air tickets and other privileges related to air travel. Apart from these, a cardholder can also bag fuel surcharge. However, credit card bills are something that every cardholder worries about. Especially during the time of an emergency, like a natural disaster, cardholders become extremely vulnerable as they deal with a great amount of personal devastation. At that time, one cannot expect them to make paying credit cards bills a priority. Loss of property and the insecurity of not being able to recover from the losses incurred hover on their minds. But taking the right decisions and making the correct moves at the appropriate time can save one from getting into credit-card related financial crisis later. Here are a few tips that one.
follow to be able to handle credit card bills better during an emergency:
Prioritize your finances: Develop a habit of making a list of things-to-do. Paying credit card bills should be a top priority on the list. It should be kept in mind that late payment of credit card bills can lead to a lot of complications. This list will help you prioritizing your finances and will remind you never to miss a payment.
Take help from the bank to sort out financial worries during an emergency: Banks are mostly likely to help you figure out a plan during a crisis. However, it is important to get in touch with them as soon as possible to give them a clear picture of your situation.
Plan a budget: Make a tentative account of all your expenses including the amount that you are willing to pay for groceries. This will give you a fair idea about your financial standing during an emergency. Include all the emergency fund that you can think of.
Let the bank know when and how much you can pay: Be in constant touch with the bank updating them about your financial status and your situation. After chalking out an amount and time of repayment of credit card bills, call the bank and let them know about the time and amount that you have decided to pay.
Be clear in your calculations: Make sure that all the calculations that you are doing is correct. At the time of an emergency, it is not right to put in wrong figures as then you will never be able to figure out a proper budget for yourself. Be meticulous while making the calculations.