Yesterday, I failed to pay my credit card bill of Rs 80000 because of insufficient amount in my account.
I think you are bit surprised why I am saying like this. Last month one of my best has friend has asked me for some financial help. His father was admitted at the hospital. To pay the hefty hospital bill he needs some help. I had no option other than saying yes to him. I paid the Rs. 80000 from my credit card to pay partial amount of the hospital bill which he required.
I thought the bill payment date of the card was far from the date, so it will be arranged anyway. After some days friend’s father was again hospitalized and I could not ask for the money to him. I decided I have to arrange it by myself only.
I approached to Axis Bank (Credit card provider) for conversion the amount into an EMI. I have found that it will cost the processing fee of Rs 1200 and interest rate is 18%. So, I have decided to go for a personal loan from my company cooperative society. This loan costs the processing fee of Rs 50 only and interest rate is 12%. I have applied the loan first half of april and ultimately due to some internal procedure I am unable to receive the amount on the last payment date i.e. 05th april. Till now I have not received the loan amount and the credit card bill is outstanding.
I am using credit card since 2011. I have never failed to pay the credit card bill in time. This is the first time I am facing this issue.
I think, if I have the contingency amount in my bank account I may not be having this problem. So everyone should have 3 months expense in their savings account if they not want to face these unforeseen circumstances.
Request everyone to have contingency amount in their savings account as it is very important to shape up your personal finance.