Escape debt trap: How balance conversion is revolutionising money management

Today, Credit Cards have become an essential part of everyone’s wallets. However, Credit Card debt management can be challenging, especially when it starts to accumulate and becomes overwhelming. In such times, a wise money management strategy is necessary to maintain a healthy financial life.

That's where Credit Card balance conversion steps in as a game-changer. By converting your Credit Card debt into affordable monthly instalments, this powerful feature empowers you to take control of your finances for effective money management.

Let’s explore Credit Card balance conversion in detail.

What is Credit Card balance conversion?

Credit Card balance conversion is a powerful money management tool that allows you to convert your outstanding Credit Card balance into equated monthly instalments (EMIs). This option becomes particularly beneficial when you have a considerable expense or an unexpected financial emergency. It enables you to spread the cost over an extended period, making it more affordable.

How does balance conversion work?

When you opt for balance conversion as part of your money management strategy, your credit card issuer will convert your outstanding balance into EMIs, which you will settle over a predetermined period. The bank will set the interest rate and tenure for the EMIs, and you can select a repayment plan that suits your budget and financial goals.

Advantages of balance conversion
 

• Improved money management
  
  

  Converting your Credit Card balance into EMIs can help you better manage your finances by breaking down your large Credit Card payment into smaller, more manageable payments.

• Lower interest rates
  
  

  EMIs often come with lower rates than the standard Credit Card interest rates, helping you save money in the long run.

• Flexible repayment options
  
  

  With balance conversion, you can pick a repayment plan that suits your needs.

• Reduced financial stress
  
  

  By converting your debt into manageable payments, you can alleviate some of the stress of mounting Credit Card bills.

Credit Card balance conversion: Key factors to consider
 

• Additional fees
  
  

  Some banks may charge processing fees or prepayment penalties for balance conversion. So read the terms and conditions before you select this option.

• Impact on credit limit
  
  

  Converting your balance into EMIs may temporarily reduce your available credit limit until the debt is repaid.

Availing balance conversion with IDFC FIRST Bank Credit Cards
 

To avail balance conversion with IDFC FIRST Bank Credit Cards, follow these simple steps -

• Log in to your IDFC FIRST Bank account or mobile app
  
• Navigate to the Credit Card section and select the 'Convert to EMI' option
• Review the interest rate, processing fees, and other terms before confirming

With IDFC FIRST Bank, you can convert your outstanding balance into an easy EMI with a flexible tenure of 3–18 months.

Besides, IDFC FIRST Bank Credit Cards provide a range of perks, including - 

• No annual fees
• Low interest rates starting from 9% p.a.
• Rewards and cashback on purchases, airport lounge access, complimentary golf rounds, travel insurance, roadside assistance, fuel surcharge waiver, lost card liability cover, online shopping benefits, and discounts and offers on various outlets 
• These benefits are tailored to different card variants, making them an excellent choice for money management and overall financial well-being

To sum it up
 

Credit Card balance conversion is a powerful tool for smart money management. By understanding how it works and availing it with IDFC FIRST Bank Credit Cards, you can quickly come out of debt and take control of your financial future.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.