I have 3 credit card and I have utilized the funds of these cards 100%. Now I need to pay back the amount to bank. I am from Pakistan and the currency is PKR. Here is the stats:
- Card 1 - 4.5K (cash credit card- Daily markup)
- Card 2 - 3K (cash credit card - Daily Markup )
- Card 3 - 1.5K (Master credit card)
Banks of Card 2 and Card 3 allows me to do equal monthly installments but not bank1.
My salary is about 120K. And to pay loans per month I can only pay 0.5K from my salary for all these cards. Sometimes I got additional payments from my freelance work.
Now main issue is that bank is charging me high markup on these 3 cards approximate 30% per month. So from various months I am only paying interest to the bank instead of actual amount.
What is the best action plan to pay to bank. Can i make loan from Bank 1 only to pay the debt of Card 1. Minimum period of loan is 1 year and I don't want to extend these payments for more than a year. But if I apply a loan for this card then I am unable to pay installment for card 2 and card 3 in full.
Kindly share your experience that what is the good approach.