The reason why Everbright Credit Card repayments are getting higher and higher is because cardholders use the minimum repayment method.
The minimum repayment amount means that if the cardholder has difficulty repaying all the amount payable before the due repayment date (inclusive), he can repay according to the minimum repayment amount stipulated by the card issuer, but he cannot Enjoy the interest-free repayment period, and the minimum repayment amount is 10% of the consumption amount plus other various payables. The minimum payment is listed on the current bill.
If the amount is not repaid in full within the interest-free period, interest will be calculated even on the amount that has been repaid. That is to say, there is no repayment period for the remaining unpaid amount after selecting the minimum repayment. Interest will continue to be accrued as long as the full amount is not repaid.
The cardholder’s bill date is the 1st of each month, and the due date for repayment is the 26th of each month;
The bank prints this copy for the cardholder on February 1st. The monthly bill includes all transaction accounts from January 1st to January 31st; Xiaorong only had one consumption - on January 1st, the consumption amount was 12,000 yuan;
Hold The cardholder's bill for the current period prints the "Amount Due for the Current Period" as RMB 12,000 and the "Minimum Repayment Amount" as RMB 1,200.
Calculation formula:
The minimum credit card repayment amount = 10% of the credit card bill outstanding for the current month + the single installment amount of all outstanding installment transactions in the account + the minimum repayment amount of the previous period. Pay off the part + all the money used in excess of the account credit limit + the minimum repayment fee + interest
If the small cardholder repays the full amount of 12,000 yuan before February 26, then 3 The recurring interest in the statement on the 1st of the month = 0 yuan. And if the cardholder only pays the minimum repayment amount every month, the recurring interest the cardholder has to pay every month is.
(1) If the cardholder only repays the minimum repayment amount of 1,200 yuan on February 26, the recurring interest on the statement on March 1 = 351 yuan.
The specific calculation is as follows: 12,000 yuan * 0.05% * 54 days (January 1st - February 25th) + (12,000 yuan - 1,200 yuan) * 0.05% * 5 days (February 26th) --March 1)=351 yuan.
(2) If the cardholder continues to repay the minimum repayment amount on March 26 (the minimum repayment amount at this time is (12000-1200)*10%+351=108351=1431 Yuan), then the recurring interest on the statement on April 1st = 159.3 Yuan (provided there is no new card payment record). It should be noted here that the interest of 351 yuan must be repaid in full, and you cannot only repay 10% of the minimum repayment amount.
The specific calculation is as follows: (12000-1200) * 0.05% * 25 days + (12000-1200-1080 yuan) * 0.05% * 5 days = 159.3 yuan.
(3) If the cardholder continues to repay the minimum repayment amount on April 26 (at this time it is (12000-1200-1080)*10%+159.3=972+159.3=1131.3 yuan), Then the recurring interest on the statement on May 1st = 143.37 yuan.
The specific calculation is as follows: (12000-1200-1080) * 0.05% * 25 + (12000-1200-1080-972) * 0.05% * 5 = 143.37 yuan.
……
And so on.
After three months, Qian Xiaorong paid 351+159.3+143.37=653.67 yuan more in interest, which is equivalent to spending 5% more on shopping. By the 5th month, the interest expense on the minimum repayment has exceeded the total interest on the 12 installment payments (the same amount owed). If you only pay the minimum payment, the interest will pile up.