When you owe too much on a credit card and can't afford to pay it back, you might want to use another credit card to pay it off, and then use a third credit card to pay off the second one, and so on, like Like a magician, he keeps conjuring new credit cards to pay off old ones. This practice is called reverse credit card. Some cardholders end up owing more and more when they reverse credit card.

What is the reason why credit card balances are increasing?

The main reason why credit card debt increases is because you need to pay a certain amount of interest and cash withdrawal fees when withdrawing cash. Once a certain card cannot withdraw cash, it is easy for the cardholder to fail to repay on time, and the capital chain is broken, causing the credit card to become overdue.

Credit card reversal means that several credit cards repay each other back and forth, which can solve the problem of being unable to repay when the repayment date arrives. In layman's terms, it's "loans to support loans": credit card reversal is a process of preparing two credit cards, then withdrawing all the funds in them, and then paying them back. The process of transferring a card is not free, and you need to pay a monthly credit card processing fee.

Generally, there are the following reasons for increasing the cost of users' credit card debt:

1. Cash withdrawal

There is no interest-free period and there is a charge for cash withdrawal. As for the handling fee, the original intention of credit cards is to swipe the card for consumption rather than to withdraw cash, so the cost of withdrawing cash is very high.

2. Deposit money into a credit card

Credit cards are different from debit cards. Depositing money into a credit card is an unwise behavior. Not only does it earn no interest, but you also have to pay when you want to withdraw it. A handling fee is required.

3. Cashing out large amounts for investment

Investment is risky, especially if you use money cashed out from credit cards to invest, the risk is even greater, and opportunism often results in "losing your wife." The consequences of "losing troops" and "stealing chickens is not losing rice". It is unwise to cash out your investment with a credit card, be careful of being trapped.

4. Credit card repayments are overdue

Credit card repayments must be timely, otherwise, interest, liquidated damages, handling fees and other fees will be enough, and the more you owe, the more you owe. .

5. Frequent installments

Although credit card installments are interest-free, they are not free. Installments will incur a lot of handling fees. Cardholders should not make frequent installments, otherwise a lot of handling fees will be added. .

6. Choose the minimum repayment

Although the minimum repayment does not need to be overdue, it is not cost-effective because when the cardholder chooses the minimum repayment, the unpaid balance will be Interest needs to be calculated from the date the consumption is recorded. If it is not repaid in time, the interest will escalate.

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