Recently, she chatted with a friend who was in debt. She said that she was not overdue and had to pay the minimum monthly payment for almost two years. She didn’t know exactly how much interest was paid, and what made her angry was this. In the past two years, she applied for four or five withdrawals and was rejected by the bank. She felt it was unfair. Why did she keep paying with a credit card but didn’t give the withdrawal? Of course, the rejection of the amount is only one aspect. For the minimum monthly repayment, there are actually many disadvantages that we don’t know about, and it will also be the beginning of a profit, so that the amount of arrears that can be repaid in a year requires two It will take three years or more to pay off. Why does the minimum repayment affect the withdrawal? The minimum repayment amount set by the credit card is to allow the customer to temporarily survive the catastrophe when the temporary funds cannot be turned around, but this is not to encourage the customer to use the minimum repayment amount. If a customer only repays the minimum repayment amount for a long time , This is equivalent to reflecting his insufficient repayment ability from the side, and even to a certain extent, it can indicate that his funds are tight and the risk of overdue is higher. Since there are potential risks, it is only natural for the bank not to increase the quota. After all, the bank itself is an enterprise with operating risks, so the most direct impact of the long-term minimum repayment is failure to increase the quota. Many people, especially young people, do not have a significant understanding of the harm of the long-term minimum repayment. Even the minimum repayment makes them feel that they can enjoy it without spending much money every month. A list of high-quality services and products is actually a consumption illusion. The long-term minimum repayment, at least, currently seems to have at least two disadvantages: one is the interest issue: as we all know, the longest interest-free period of a credit card is 50 Good day, if you can settle the current credit card debt on the repayment date, you don’t need to calculate the interest; but the minimum repayment is obviously not paid off on the repayment date, which means, The unpaid money will continue to calculate interest. Not only will the principal generate interest, but the interest will also generate interest. As the monthly profit rolls over, you will owe more and more bank interest. The second is the high level of debt: the minimum monthly repayment amount, most of the principal is retained; next month, the minimum repayment will accumulate most of the principal for two months. In the long run, as the accumulated debt continues to rise, Your minimum repayment amount is getting higher and higher. One day, you will become unable to repay even the minimum repayment amount. At this time, your debt is already at an abnormally high point. The more important point is that under normal circumstances, if you choose the lowest repayment, you can no longer choose the bill installment, so in the end, the task waiting for you is to pay off in one go, but how many people can accumulate huge debts at one time Pay it off? If you fail to do so, the end will be overdue, and you will eventually be in crisis. In conclusion, the minimum repayment is a temporary countermeasure and cannot be regarded as a daily operation, because when you realize the seriousness of the problem, you may no longer pay;

zhiwo

By zhiwo

0 0 vote
Article Rating
Subscribe
Notify of
guest
11 Comments
Most Voted
Newest Oldest
Inline Feedbacks
View all comments
helpmekim
6 months ago

I’m very happy to answer for you: the minimum repayment will always generate interest every month. The interest calculation is five ten thousandths a day. If the minimum repayment is paid and there is still 10,000, the interest will be 150 yuan. Every month, it will be 1,800 a year. It is better to pay off the bills, otherwise the interest will be a lot of money every month. But if you can’t afford to pay it back and you are overdue, then choosing the lowest repayment is better than overdue. After the overdue period, there will be not only interest, but also a monthly penalty of 500 per 10,000 of the bill, and endless collections. It is possible to get to the point of prosecution, and the trouble will come one after another. After the credit card is overdue, according to Article 70 of the “Measures for the Supervision and Administration of Credit Card Business of Commercial Banks”, under special circumstances, it is confirmed that the amount owed by the credit card exceeds the cardholder’s ability to repay, and the cardholder is still willing to repay The bank can negotiate with the cardholder on an equal footing to reach a personalized installment agreement. The maximum period of a personalized installment agreement can be divided into 5 years. However, negotiation is also subject to conditions. Not everyone can negotiate. You must have the willingness to repay. If you can’t negotiate, you want to pay back this month and not next month. This is not possible. You must have the ability to repay. You owe 60,000, divided into 30 installments, and repay 2,000 per month. You must have a monthly repayment ability of 2,000 to meet the personalized repayment conditions.

heloword
6 months ago

Generate high interest If the credit card only repays the minimum repayment amount, the credit card will begin to accrue interest after the repayment date has passed. Five ten-thousandths of interest will be charged every day, and it is collected in the form of full penalty interest, which means that the part of your repayment is also accounted for interest, and compound interest is calculated and collected on a monthly basis. Therefore, if you keep the minimum repayment, if things go on like this, it will cause more and more interest to be repaid, and the pressure of repayment will also increase. 02It is not conducive to increase the amount, or even reduce the amount of credit card. If you want to increase the amount, in addition to multi-swiping consumption, you also need to repay on time. And the bank prefers customers who repay the full amount and handle the installment properly. If you have been repaying the minimum amount, It is not conducive to your credit card withdrawal. Although the minimum repayment is not overdue, it will make the bank think that there is a problem with your repayment ability, and thus cannot afford the high limit credit card, so it will reduce the risk by reducing the amount or even suspending the card. Therefore, for friends who have always wanted to raise the amount, be sure not to make a long-term minimum repayment. Only when you spend more with your card and repay the amount in full or instalments on time can you increase the amount. 03 The risk of overdue increases because the minimum repayment will incur interest charges. If the minimum repayment amount is used for a long time, the cardholder will not reduce the repayment pressure, but will increase the cardholder’s repayment burden due to interest. Over time, the interest expenses that credit card users need to bear will be very high, and this method of minimum repayment can easily make cardholders develop bad consumption habits, and eventually they will be overdue due to excessive consumption and inability to repay. Once the credit card is overdue, it will have a serious impact on the cardholder’s personal credit. If the personal credit is poor, subsequent applications for credit cards and loans, purchases of houses and cars may be affected. 04 Influence on personal credit score Although the minimum repayment is not overdue and will not affect your personal credit record, it will still affect the bank’s judgment of your personal credit status over time. If the cardholder only repays the minimum amount of repayment each month, the bank generally thinks that the cardholder’s repayment ability is poor, and the credit report will also reflect the minimum number of repayments in 12 months. In this case, it will be more difficult to apply for a loan, and even if it has a chance to pass, it may not be as good as others in terms of quota and interest rate concessions. Therefore, if the cardholder can choose to repay in full, try to repay in full, and use the lowest repayment method when possible. It’s best to plan ahead when you consume, and don’t exceed your personal repayment ability.

helpyme
6 months ago

Don’t always keep the lowest! Don’t always keep the lowest! Don’t always keep the lowest! The important thing is to say three times. I didn’t understand the interest calculation rules of bank credit cards before. I don’t know how much interest was paid in vain. The minimum repayment of credit cards is a temporary solution that cannot be turned around. Never try to use short-term methods to solve long-term problems. The credit card is the lowest, but the bank interest is not calculated based on your outstanding principal, but the full amount of the current bill. What does it mean? For example, your credit card bill is 10,000 yuan in the current period, and generally the minimum repayment is about 10% of the bill. Then, you pay 1,000 yuan as agreed, and there is 9,000 yuan left. By the next month’s billing day, you think you will calculate the interest based on the 9,000 principal. In fact, it is calculated based on the 10,000 yuan and the daily interest rate of 10,000 yuan. Then the amount of your bill in the next month is (10000-1000) + (10000×0.05%×30 days)=9150 yuan. You continue to be the lowest this month, the same 10% is the lowest, 915 yuan, next month’s bill (9150-915) + (9150 × 0.05 × 30 days) = 8372.25 yuan may seem to be boring? But in these 2 months you had paid back 1915 yuan, and the principal was only 8085 yuan, but now the third bill is 8372 yuan, which is an extra 287 yuan. The interest rate exceeds 3% in 2 months. You can try depositing 10,000 yuan in the bank. , A year is only a little more than 200 yuan and most people will continue to consume when your card is no longer consumed. After this calculation, the bill will only get bigger and bigger, until you are as sudden as me. Discovered, how could you owe so much? As a result, the debt is beyond your ability to repay, and you can’t make it. So, you can either install it in installments, and the interest will be much cheaper than the lowest repayment. Of course, the interest handling fee is not low. It’s best to control your expenses reasonably and consume rationally. Don’t exceed yourself. If you have found that your income is not up, you must stop the loss in time. Don’t dare to confess to your family as I did before, and fall down on your own. In the end, the more you roll, the sooner you pay attention to debt, the sooner Go to the solution, don’t delay! I hope the above content is helpful to you, please like it and let more people see it

sina156
6 months ago

Interest-related. People have three failures and six prosperity, and it is not shameful to have the minimum repayment. The minimum repayment is a state of mind, a very optimistic state of mind. For example, with a card of 30,000, it will almost explode after a few kidney dialysis. How to pay it back? The bank helped you think about it, and pay back 1%-2% of the principal every month, which is guaranteed to be repaid within 10 years. There is another kind of credit card installment, the interest rate is relatively low, but the monthly principal is high! There is no chance for you to pay it back within 10 years, usually 12-48 months, when the card owner himself has kidney dialysis. The minimum repayment is a kind of hope, what if you win the lottery? With the inheritance, the company has a large severance payment. In short, he can’t die for a while, and after the monthly statement day, he will be a hero again. The person who really understands the minimum repayment is the king in life.

yahoo898
6 months ago

Minimum repayment amount: Refers to the cardholder who has difficulty in repaying all payables before the due date (inclusive), they can repay according to the minimum repayment amount set by the issuing bank, but they cannot enjoy the interest-free repayment period. , The minimum repayment amount is 10% of the consumption amount plus other types of payables. Credit card only repays the minimum repayment amount, as long as it is not overdue, it will not affect personal credit, but because the payment is not fully repaid, consumption does not enjoy interest-free, all transaction payments will begin to accrue interest from the date of consumption and will be collected monthly Compound interest. The benchmark interest rate is five ten-thousandths of a day. It is best not to always make the minimum repayment, in addition to incurring high interest expenses, it is also easy to cause overdue risks.

leexin
6 months ago

If the user is unable to open the minimum credit card repayment due to the lack of cash flow, this repayment method can indeed solve the user’s temporary difficulties and prevent the user from overdue. But is there really no problem with the long-term minimum repayment amount? In the long run, the disadvantages outweigh the advantages compared to the cardholders. There are the following points: 1. The interest-free period cannot be enjoyed. The credit card provides each user with a better interest-free period, but if the cardholder chooses the lowest return The principle is that you cannot enjoy the interest-free period service. The bank will charge daily interest at 0.05% of the total amount of the bill. The most important point is the calculation of compound interest. It seems that long-term use of the minimum repayment will not solve the problem at all. People’s repayment pressure will also cause a greater burden of repayment, and the cost of repayment each month will increase substantially. 2. There is a risk of overdue. If the minimum repayment amount is used for long-term repayment, the later the cardholder will need to pay the more repayment amount. Once there is a shortage of funds, even the minimum repayment amount cannot be guaranteed, and there is a large risk of overdue. Overdue will definitely affect the credit investigation. 3. Reduce the card limit. If the minimum repayment amount is used for long-term repayment, the bank will think that the cardholder’s repayment ability is insufficient. In order to avoid risks, the bank will reduce the cardholder’s credit limit, and the minimum repayment cannot be guaranteed at that time. In summary, it is not recommended to pay the minimum repayment for a long time. Hope to adopt.

greatword
6 months ago

Nowadays, more and more people are beginning to apply for credit cards, and many cardholders will choose the minimum repayment amount, but I don’t know if you have ever thought about such a problem, too much credit card overdraft is not enough, and the minimum repayment amount has always been paid What are the consequences. The first thing that can be determined is that as long as the minimum repayment amount can be repaid, there will be at least no overdue records in the credit investigation. However, in addition, the long-term minimum payment will make the bank reassess the user’s economic level, and even May reduce the credit card limit. At present, the minimum repayment amount of most credit cards is about one-tenth of the current bill, but in addition to that we have to pay interest, which also loses our biggest advantage of using credit cards, that is, the interest-free period of credit cards . In addition, we mentioned above that long-term repayment of the minimum payment will make the bank question the user’s ability to repay. If a bank loan is needed during this period of time, such as a car loan, the probability of a user successfully applying for a loan will also be greatly reduced. . In order to reduce risks, some banks even require cardholders to settle their debts before they can apply for loans. Therefore, from the perspective of these two aspects, paying only the minimum payment can indeed relieve our economic pressure to a certain extent, but this is not a long-term solution, and it may even have a certain negative impact on our credit investigation. Of course, if the cardholder does not have the corresponding repayment ability, the lowest repayment is already the best option. After all, if the credit is overdue, the subsequent impact will only become worse. But what needs to be reminded is that instead of waiting for a moment of inability to pay the bills, it is better to stay consistent from the beginning of consumption and not to do anything beyond your financial ability. After all, even if you have a credit card, this can only be a temporary solution. If you use a credit card for consumption outside of your capacity for a long time, then sooner or later, there will be a break in the capital chain. At that time, the situation will only get worse. And in addition to credit cards, you should be more careful about those online loan platforms.

loveyou
6 months ago

Bank practitioners. I advise everyone not to engage in minimum repayment on credit cards. Be sure to make the best repayment! Optimal repayment! Optimal repayment! The minimum repayment of the credit card, the interest of the unpaid part is five ten-thousandths of a day, at an annualized rate of 18%, calculated from the day of the overdraft until it is repaid. This interest rate is really about to catch up with the high xx. What a big head of talent can’t be considered to have to contribute to the bank. If the overdraft cannot be opened for a period of time, it is recommended that the overdraft amount be divided into installments, and the annual handling fee of 7% is sufficient. There is a real need for funds, and you can also do some personal loans. Now there are so many inclusive policies, and many banks with loan interest rates up to 4%. I hope everyone will settle the accounts and find a calculator to understand. Is the interest saved not fragrant?

strongman
6 months ago

Credit card repayment is the minimum repayment. Unpaid repayments are not entitled to the interest-free policy, and interest is required. The minimum repayment interest is charged at five ten thousandths of the consumption amount every day from the day the consumption is credited, which is the daily interest we often say Calculated by five ten thousandths, and compounded monthly. In other words, new interest is generated every day. The longer it takes, the more debts you owe. If the repayment time is long, the interest charged by the bank may exceed your arrears principal. In this case, as long as you dare not overdue, many people may not understand how to collect the minimum repayment. The bank is not a charity. No one will remind you to solve this problem. The bank only hopes that you will pay the minimum repayment. The longer you pay back, the more the bank earns. The more you lose, this is one of them. In addition, the record of the minimum repayment will be kept on the credit report, whether it is the amount of credit card withdrawal, other credit card applications, or loans under your personal name, such as car loans and mortgages, will have a certain impact. Personal advice, if you really can’t pay it back, you can consult the bank’s installment repayment business if you need a long-term turnover. Sometimes when the rate is discounted, the fee is more appropriate.

stockin
6 months ago

If this is the case, please do not continue. If the amount is not large, you can pay it back in one go. If you can’t, confess with your family and let them help you or find a few friends who can raise thousands or hundreds of points; if The amount is relatively large. According to the current online statement, you can sacrifice your own credit and communicate with the bank to reduce your stress! In the end, the minimum repayment will make you fall deeper! Because that’s how I came here!

11
0
Would love your thoughts, please comment.x
()
x