Make Your Payments in EMIs for Better Financial Management

Be it purchasing a house, buying a car, a wedding, education, or anything else, when you are to face multiple expenses, efficiently managing the finances becomes a challenge. We often use credit cards to make high-value purchases, and credit card bills also make significant financial liability.

Some expenses you must endure, but that doesn’t mean managing it can’t be any less problematic. What we are trying to say here is that you can structure a more practical and more manageable financial strategy. The trick lies in EMI or credit card EMI; want to know how? Read on as we explore the details and also introduce you to the very useful tool, named credit card EMI calculator!

How Does EMI Make Financial Management Better?

More or less, we all have a basic idea of how EMIs work. Instead of making a one-time payment of a large sum, we divide the total payable amount in monthly instalments, and return the debt over a certain period. Credit card bill management becomes less strenuous with EMI transactions.

Here are the many perks of opting for EMIs:

Reduced Financial Burden

Paying a sum of INR 1 lakh in one go or repaying INR 1 lakh over a few months in smaller instalments like INR 10,000 - the latter certainly offers a lesser monthly finance burden. It gives you a more flexible opportunity to pay for your expenses at your own pace. This way, you are not overwhelmed by debt and can continue to pay for other necessities of your life.

Simplified Repayment Process

EMI is a type of structured repayment method. The amount of each instalment, the date of every instalment payment, and the overall duration available to complete the repayment - every detail is predetermined. It means you are well-informed about your financial liabilities beforehand and can plan the rest of your monthly expenses accordingly. The EMI facility is mostly automated, so the sum will be automatically debited from the bank account, ensuring you do not miss any payments.

Lower Interest Rates

Credit cards are practical tools, and their benefits are well-known. That said, high interest rates are often considered a drawback for these payment options. Credit card EMIs tend to have lower interest rates than credit cards themselves. The math from here is quite easy - the lower the interest rate on the principal payable amount, the lower the total amount you pay over time.

Flexible Repayment Tenure

EMIs come in a wide variety of tenures. You have the liberty to select any tenure that you feel would best suit your financial comfort. If you do not mind paying high EMIs and want to return the sum quickly, you can choose a tenure for a couple of months, or you may even go with a longer duration to keep the EMIs low. The flexibility is certainly advantageous.

Improved Credit History

Missing a credit card payment will significantly impact your creditworthiness. Your credit history will suffer, and your credit score will decrease because you, as a borrower, lose the trust of the lenders. If you can choose an EMI amount that is well within your affordance in terms of your monthly expenses, you will be able to make payments on time and thus have a healthy credit history. In fact, timely EMI payment is a commonly-suggested way to increase one's credit score.

No-cost EMI Options

A huge number of retailers and banks have introduced no-cost EMI, under which you pay for the price of the product in instalments without extra interest. The facility makes high-value purchases possible and easier by spreading the cost over time without extra charges. It's an excellent way of managing expenses without stretching finances thin.

Overall Better Control on Finances

When you do not have to spend all your money on one particular purchase, you have resources left to finance other purchases and aspects of life. One hefty bill does not keep the others from making appearances. EMIs allow you to pay for other needs and requirements, fulfil your desires, and even continue savings.

Credit Card EMI Calculator

This tool will help you efficiently plan your credit card EMIs. Online calculators are well accessible. You just have to enter the transaction amount, tenure, interest rate, and any other detail required, and the calculator will instantly show you the EMI amount as well as the interest and principal breakdown. Utilise the credit card EMI calculator and smoothly sail through your finances.

Summing Up!

Financial management should be cost, effort, and time-effective. Bills and invoices should not be neglected; with the right strategies, they will also not feel like a burden. The EMI feature on bill payments is greatly beneficial. It has many perks, which, when combined, lead to an overall well-strategised and executed financial management. Take advantage of this feature, and say hello to reduced financial stress and effortless expense management.