ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Paying Off Major Credit Card Debt

Updated on August 19, 2011

It was in 2002 when I got my first credit card from Citibank after filling up a simple form and providing a photograph. I was offered this credit card with Rs. 50000 limit by Citibank as I had my salary account with Citibank (Citibank Suvidha account) since year 2000. I also purchased health insurance worth Rs. 1 lakh via my Citibank credit card. I started using the credit card for shopping and paying some utility bills every month. I kept on paying balance every month. In between this, I kept on receiving calls from people offering credit cards from banks like ABN Amro, ICICI, SBI, and HDFC bank. After seeing the benefits of credit cards, I kept on grabbing other cards offered by the telecallers, so in 2005, I had credit cards from ABN Amro Bank, ICICI bank, SBI bank, and Citibank. Now my total limit on credit cards had reached to approximately Rs. 3 lakhs and I was able to make all the payments for all my cards on proper time. Everything went fine was 1 year until 14th January 2006 when I got engaged with final date for engagement celebration and marriage being April 14 and April 16, 2006 respectively.

Now I had already taken a home loan in September 2005, another loan for buying a car, and started using credit cards extensively for buying furniture for my new house from Kirti Nagar Furniture Market, engagement and wedding dresses from Karol Bagh, Rajouri Garden, South Extension, some pair of shoes and sandals, saris for my to be, jewelry including engagement ring and necklace set from Karol Bagh, and shopping for other items required for marriage from various shopping complexes around Delhi. In India, we have a tradition of giving gifts to close relatives at the time of marriage, so I bought clothes for relatives via credit cards from Chandni Chowk market in Delhi. Everything went well, we got married, went for our honeymoon, and came back. Now it was time for me to check my personal finances because before that I didn’t have even a single minute to think about my expenses, debts, loans, earnings, anything.

In 2007, financial problems for me and my family started. Installments for home loan, car loan, and increased expenditure at home after marriage led me into the debt trap of credit cards. I had enjoyed the benefits of credit cards, now it was time for me to enjoy the demerits of credit cards. I admit I was not able to clear my credit card dues every month for several months. The credit card debt kept on increasing. It became so high that I took a personal loan in 2008 to clear two of my credit cards, Citibank and ABN Amro. I did this because I had seen that late fees and interest charges of credit cards are far higher than any other loan, so closing credit card accounts which come under bad debt should be my initial step for becoming debt free. It was in 2009 when after losing all my savings and investments, I closed down all my credit cards and got rid of the biggest financial problem I had in my life. The total amount I utilized from credit cards was Rs. 275000/- and I paid them back more than Rs. 400000/- to come out of debt. Right now, I don’t own any credit cards and only use four International Debit Cards for any types of transactions whether online or offline. I am happy that I am at least credit card debt free.

Use cash instead of credit cards
Use cash instead of credit cards

So it is my personal recommendation to credit card users around the world that getting and using the credit card is very easy but it is very difficult to come out of major credit card debt due to credit card late fees and interest charges, so you must use the credit cards wisely. If you spend extensively on shopping or anything, it will be better if you perform all your transactions in cash or with the use of debit cards. With debit cards and using your own money, you will keep your own spending, your family budget, and your overall personal finances in better control. Also, credit cards are just like plastic money and it is better to pay off major credit card debt as soon as possible.


    0 of 8192 characters used
    Post Comment

    • soni2006 profile imageAUTHOR

      Rajinder Soni 

      7 years ago from New Delhi, India

      Thank you so much crystolite and AllSuretyBonds for your visit and comments on this hub on paying off debt.

    • AllSuretyBonds profile image


      7 years ago

      Great Hub. Three words. Budget, budget, budget! Setting a budget and sticking to it is key to trying to eliminate some of your credit card debt.

    • crystolite profile image


      7 years ago from Houston TX

      Nice stuff,thanks for writing.

    • soni2006 profile imageAUTHOR

      Rajinder Soni 

      7 years ago from New Delhi, India

      That's the best way to avoid falling in the debt trap. Nice and simple.

    • ocbill profile image


      7 years ago from hopefully somewhere peaceful and nice

      my plan is simple. whatever debt I spend it on (usually less than 3 items - (sometimes "0") I pay off the following month.

    • soni2006 profile imageAUTHOR

      Rajinder Soni 

      7 years ago from New Delhi, India

      Thank you so much LillyGrillzit, calicoaster, and Karanda for your comments. Since I wrote the hub

      two years ago, I have been receiving emails regarding the problems people in India have been having with credit cards. I have tried to answer a few of them sharing my experience with them and will publish a few of them via my hubs for the benefit of other people having credit card issues in India.

    • Karanda profile image

      Karen Wilton 

      7 years ago from Australia

      Good advice Soni, credit cards can be such a trap if not used or managed well. Cash is always better for up front payment. It makes you stop and think before you buy.

    • calicoaster profile image


      7 years ago

      Kudos to you soni, for efficiently coming out of the debt. Somehow credit cards always scare me, and I will not feel ashamed of admitting that I never ever owned any credit card. It might be my psychological problem that I start getting nervous whenever I have any bills unpaid. I always have used my debit cards for all the transactions and have been quite happy about it!! :D...

      Now, with cheque card facilities, we don't even have the problem of sharing our atm pin number anywhere, they work like credit card only. My friend owns his account in Axis bank and he uses the debit card for all the transactions without having to provide a pin! :)

    • LillyGrillzit profile image

      Lori J Latimer 

      7 years ago from The River Valley, Arkansas

      I appreciate your Hub, and your honesty in discussing debt. Thanks and good Luck!


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)