1. How to calculate interest after a credit card is overdue

First of all, you must know that when a cardholder uses a credit card and repays it overdue, the bank will usually charge the cardholder A late payment fee of about 5% is charged, and credit card interest of 5% is charged every day from the date of consumption to the last day of repayment.

Although the credit card interest rate seems very small, if converted into an annual interest rate, it is as high as about 18%, which is three times the interest rate of a loan of the same amount. Moreover, as profits roll over, late payment fees and interest every month will be recalculated back to the principal, and in the end the interest will only get higher and higher.

2. What should I do if my credit card is overdue?

1. Tell the bank staff that the overdue payment is just a recent shortage of funds, not a malicious overdraft, and promise to repay it.

2. Don’t avoid bank collection, face it bravely. However, if you encounter violence, threats and other illegal behaviors during the collection process, you can also collect evidence and report it.

3. Express your strong willingness to repay. If you have difficulties, you can explain the actual situation to the bank and apply for installment repayment. If negotiations are successful, repayments can be divided into up to 60 installments.

4. You must have your own repayment plan and make reasonable plans based on your actual situation. If you only want to negotiate installments and do not plan according to the actual situation, it is likely to lead to secondary expectations.

3. What are the consequences of being sued for an overdue credit card?

1. If the credit card is overdue for more than 3 months, the bank will collect it according to law. According to the loan contract and guarantee contract, the bank will sue the cardholder in court. The court will take measures such as property preservation, including freezing deposits in all bank accounts of lenders and guarantors, and seizing mortgage and pledged properties.

2. If the cardholder is able to repay the loan but refuses to implement the current laws, he will be subject to legal sanctions. If the borrower cannot repay the loan, the guarantor shall bear the responsibility for repayment.

3. If the overdue amount exceeds RMB 50,000, if the bank is convicted of malicious overdraft, he will be sentenced to at least five years in prison.

4. After the cardholder loses the lawsuit, in addition to paying off the debt, he will also compensate the bank for the litigation costs.

In special circumstances, you can click the consultation button on the right. The website provides professional lawyers to answer questions and help you solve your repayment problems so that you can return to your normal life.