Credit cards have their advantages. One is that they can be overdrawn for consumption in advance, and the other is that they can withdraw cash for emergencies when they are short of money. However, the latter is less cost-effective than the former, because card consumption is interest-free, while cash withdrawals require Interest is charged, depending on the amount withdrawn and how long it is used. The following uses a credit card withdrawal of 4,000 in January as an example to teach you how to calculate interest.

It is reported that the interest on credit card cash withdrawals is calculated from the date of withdrawal. Currently, the cash withdrawal interest rates of all banks are roughly the same. The daily interest rate is 0.5%. Compound interest is calculated monthly. The calculation formula is: total cash withdrawal interest = cash withdrawal amount * 0.05%*expiration date. If you get 4,000 yuan in January, you have used it for 30 days, so the total interest is 4,000*0.05%*30=60 yuan.

But this is only interest. If you think that the total repayment amount is principal + interest, and you only need to repay 4,060 yuan, then this view is wrong. Because in addition to accruing interest, credit card withdrawals also require payment of handling fees.

Each bank has different regulations for credit card withdrawal fees. Generally, the withdrawal fee is about 1% of the withdrawal amount. At the same time, there will be restrictions on the minimum and maximum withdrawal amount, and there are domestic and foreign withdrawal fees. different.

For example, the domestic withdrawal fee for a China Merchants Bank credit card is 1% of the amount of each withdrawal, with a minimum of 10 yuan per transaction. If you get 4,000 yuan, the handling fee is 4,000*1%=40 yuan. Then the final repayment amount = principal + interest + handling fee = 4000 + 60 + 40 = 4100.

Therefore, the cost of withdrawing cash from a credit card is indeed not cheap, and the longer the withdrawal time, the higher the cost. After all, in addition to daily interest calculation, monthly cash withdrawals also need to calculate compound interest. The situation of not paying off the debt in time is very serious. Therefore, as a last resort, do not use a credit card to withdraw cash.