The Vicious Cycle of Credit Card Debt Credit cards are convenient, but they can lead to a debt trap if not used responsibly. The high-interest rates (often 30-45% per year) can make it difficult to pay off the balance.

Strategies to Clear Your Debt * **Stop Using the Card:** The first step is to stop making new purchases on your credit card until the existing debt is cleared. * **The Debt Snowball Method:** List all your debts from smallest to largest. Make minimum payments on all debts, but put any extra money you have towards clearing the smallest debt first. Once the smallest debt is paid off, you feel a psychological win, which motivates you to tackle the next one. * **The Debt Avalanche Method:** List your debts from the highest interest rate to the lowest. Make minimum payments on all, but focus on clearing the debt with the highest interest rate first. This method saves you more money in interest over time, though it might take longer to see the first debt cleared. * **Convert Dues to EMI:** Ask your credit card provider if you can convert your outstanding balance into an Equated Monthly Installment (EMI) plan. The interest rate on EMIs is usually much lower than the revolving credit interest rate. * **Use a Personal Loan for Debt Consolidation:** Take a personal loan at a much lower interest rate (e.g., 11-15%) to pay off your entire credit card balance at once. This leaves you with a single, manageable EMI and can save you a huge amount in interest.

Key Takeaway Credit card debt is an emergency. Prioritize paying it off using a clear strategy. Once cleared, use your credit card as a payment tool, not a loan, and always pay the full balance every month.