Understand Outstanding Amount in Credit Cards

Have you ever come across terms like “APR” and “utilisation ratio” relating to your credit card and started to worry about its meaning? Another one is “currently outstanding.” This can confuse even the most financially savvy individuals. But worry not, this blog will be the guiding light. First, we’ll decode exactly what current outstanding means in a credit card. Then, we’ll dig into why it matters and how it can impact your wallet.

What is the Current Outstanding Amount in Credit Cards?

The existing balance on your credit cards is like a financial snapshot, showing your precise debt to the credit card company at any specific time. Contrary to the statement balance, which shows your transactions in a set billing period of around 28 to 31 days, the current outstanding balance is changed with each transaction. It is, thus, an ever-changing summary that includes all your transactions, withdrawals, fees for missed payments, and any interest that has built up on outstanding balances.

ALSO READ: OneCard Credit Card Statement: A Complete Guide

Difference Between Current Outstanding and Statement Balance

While both terms reflect how much you owe on your new credit card, they operate on different timelines. The current outstanding balance is a dynamic figure that reflects all your recent transactions, including those made after your latest statement closed. It’s a real-time snapshot of your cumulative debt. The statement balance, on the other hand, is a static figure representing your activity during a specific billing cycle. It doesn’t account for any transactions after the closing date.

Checking Your Current Outstanding

Understanding what your current outstanding balance in credit card is key to managing your credit card effectively. But how do you actually begin to understand it? Fear not, there are several ways to go about this:

1. Net Banking

Most banks offer the convenience of online banking. Simply log in to your account, navigate to the credit card section, and voila! Your current outstanding balance should be displayed prominently. This is often the quickest and most convenient way to check your current outstanding and see your current debt picture.

2. The Mobile App

In today’s tech-savvy world, many banks provide mobile apps that mirror the functionality of online banking. Download your bank’s app, log in with your credentials, and head over to the credit card section. There, you’ll likely find your current outstanding balance readily available.

3. Customer Service

Sometimes, navigating the digital landscape can be daunting. However, a friendly customer service representative is just a phone call away. So, reach out to your credit card company’s customer service line, and a representative will be happy to assist you in retrieving your current outstanding balance.

ALSO READ: How to Check Credit Card Balance? Step by Step Guide

Strategies for Managing Your Current Outstanding Balance

The current outstanding credit card statements might seem difficult to curb. So, here are some tried and tested strategies to keep it under control:

1. Pay in Full

The ultimate habit? Pay your balance in full each month. This vanquishes the dreaded interest charges and keeps your credit utilisation ratio low, which can positively impact your credit score. Remember, a healthy credit score unlocks better loan rates and financial opportunities in the future.

2. Set Up Alerts

Many banks offer the option to set up alerts for your credit card activity. Consider setting alerts for transactions exceeding a certain amount or approaching your credit card limit. These alerts act as digital watchdogs, notifying you of potential spending sprees and allowing you to course-correct before your current outstanding balance spirals out of control.

3. Budget

Uncontrolled spending is the enemy of a manageable current outstanding balance. Therefore, craft a budget that tracks your income and expenses, allocating funds for essential needs and leaving room for some fun. For instance, One Credit Card offers you the option to set a monthly budget and get alerts as soon as you exceed it. You can even set category-wise budgets to rein in your spending habits in a particular category.

4. Beware of Minimum Payments

The minimum payment option might seem like a soothing melody, but it’s a seductive trap. Moreover, paying only the minimum keeps you in full debt for a longer period, leading to a snowball effect of interest charges. Thus, aim to pay more than the minimum whenever possible to chip away at your current outstanding balance and escape the clutches of debt.

ALSO READ: Why Paying Credit Card Minimum Amount Does Not Help?

Interpreting the meaning of current outstanding balances in credit card statements enables you to constantly navigate the world of credit cards and debts. Keep in mind that knowledge acts as protection from the painful consequences of debt. Therefore, make sure to have a strategy in mind when you use your credit card again. In the end, effectively handling a credit card can lead you to financial independence.

FAQs

1. What does current outstanding mean in a credit card?

It’s the real-time balance on your card, showing credit card fees, total debt, recent transactions, and accrued interest.

2. Should I pay the current outstanding or the total outstanding?

Paying the total outstanding is ideal to avoid interest, but paying the current outstanding helps manage immediate debt.

3. What is the difference between due and outstanding?

The current outstanding balance updates instantly with each transaction, providing a real-time view of your credit card debt.

4. Does the current outstanding balance include interest and fees?

Yes, it includes interest, fees, recent transactions, and any missed payment charges, showing your total outstanding debt at any time.