HOW TO GET RID OF THE FINANCE CHARGES OF CREDIT CARD
HOW TO GET RID OF THE FINANCE CHARGES OF THE CREDIT CARDS - A INNOVATION BY ME
First of all I may be excused for peeping into the domain of Economics. But I did it and helped my friend. Even you can also use that simple method to get rid of unnecessary finance charges. One of my colleagues had the credit card of one famous private bank and his credit limit was INR-500000/-. Every month he used to shop around 50K to 60K INR and at the same time every month he used to pay 50K or 60K INR. Still he used to face a finance charges of 3K to 4K INR per month for the amount for which he already shopped earlier. Let us assume the uncleared balance was INR-100000/-. All of you know the interest rate of any national or international credit card is generally 3% per month, i.e. 36% per year. So for one lack rupees his per year finance charges used to be INR-36000/- That means per month INR-3000/-. He expressed this to me and sought as solution from me, since I am called the MANAGEMENT GURU and CORPORATE HONCHO by most of the people for dealing the subjects of Management nearly for 20 years and authoring books on Management. I thought for a while and advised him to apply for two more credit card. Then I advised him to use all the new to credit card credit equally and use the previous credit card relatively less for shopping purpose and advised him to clear the complete dues of the two new credit cards per month so that they can’t claim any finance charges. As for example previously he used to use only one credit card and shop for 60K INR per month. But always there was an over burden of One lakh INR for which he had to pay INR-3K per month. Now I advised him to shop 10K and 20K in the new two credit card and slightly reduce his shopping in the old credit card and let the shopping in the old credit card doesn’t exceed 20K. So the total shopping becomes 50K as compared to the easrlier 60K. Then I advised him to pay the full amount per month for the two new credit cards ( 10K and 20K) and for the old credit card though the shopping is 20K per month, but let him pay 30K per month. What is the effect for all these. The burden on the old stopped increasing. Earlier it used to be charged 60K per month, now it is only 20K per month. So automatically the finance charges will reduce. Secondly he uses it for 20K and returns 30K. So for paying excess amount than the amount for which it was used for shopping the amount of finance charges gradually started decreasing and within one year practically he got rid of the complete finance chargers. Because the finance charges reduced gradually. Let us give an example. In the very first month when he returned 30K and shopped for 20K, then excess amount given was 10K, out of which 3K is the finance charges. But he returned at least ( 10-3)K i.e. 7K of the remaining 100000 INR over burden. So now after one month the over burden reduced to 93000 INR. By this way if you proceed gradually the amount of over burden will reduice and within one year he got rid of the complete over burden. So after one year if he uses all the three credit card equally ( as for example per card per month expense 17K INR, then in all the three cards the total amount of shopping becomes 51K. In the previous year he used to pay 60K per month only for one card and out of which always there used to be a hidden component of 4K INR as the finance charges. But after one year he spends by all three cards and his shopping limit is not enhanced and by equally using three cards per card he shops for an approximate amount of 17K and by the end of the month he clears the balance of all the three statements ( 17 + 17 + 17 )K INR. Could you get me. I think yes. If you like this concept adopt this procedure , it will help you and make it viral for the benefit of your friends and relatives. Some people ( specially the middle class Indians) are very much scared of credit card, whereas whole USA is running on credit cards. It’s just like nuclear power, you must know how to use it.
Professor SM
Professor, Author, Poet, Thinker, Student Counsellor, Marriage/Affair Counsellor ( always I love the young lovers who are grossly misunderstood by this jealous society- because most of them were deprived of love for their too selfish attitude and narrow thinking. When I see a young couple in deep affair I present them chocolates), Economic Advisor to many concerns and industries
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AUTHOR OF THE BOOK ‘CORPORATE MANAGEMENT SIMPLIFIED’
https://en.wikipedia.org/wiki/Suvasish_Mukhopadhyay