The interest on the minimum credit card repayment amount is not high, and the converted interest on the credit card installment payment is relatively high.

Generally speaking, the handling fee for credit card installment repayment for 1 year (12 installments) is lower than the annual cash withdrawal interest rate of 18, and higher than the bank's 1-year commercial loan interest. Take the installment of a 35,000 yuan bill as an example. The 35,000 yuan bill is divided into 12 installments, and the repayment in each installment is 2,916.67 yuan.

What should I do if my credit card is overdue and the interest rate is too high?

When the cardholder's credit card is overdue for a long time and accrues a large amount of interest, causing the cardholder to have greater repayment pressure, it is recommended that the cardholder negotiate with the bank for interest-free repayment.

According to the new overdue provisions on credit cards in the Civil Code, cardholders can negotiate with banks for interest-free repayment. Currently, the longest interest-free repayment period that major banks can apply for is 60 months, which is five years. However, this does not mean that all cardholders can negotiate credit card repayment with the bank. Cardholders need to meet certain conditions.

First of all, the cardholder needs to prove to the bank that he is not overdue maliciously and that he currently has no ability to repay. As long as the cardholder can prove it, the bank will waive part of the interest at its discretion and even agree to negotiate repayment with the cardholder. Cardholders can also provide the bank with documentation proving their current serious illness, bankruptcy, etc., and negotiate with the bank on an equal footing to reach a personalized installment repayment agreement.

To apply for five years of interest-free repayment, cardholders need to reach a personalized installment agreement with the bank. If the bank refuses to negotiate with the cardholder and sues the cardholder, the court will also organize a settlement communication between the cardholder and the bank.

Credit card payments that are repaid on time each month generally do not accrue interest. If the cardholder repays the credit card bill in full each month and does not withdraw cash, no interest will accrue. If the cardholder uses a credit card and the bill is in installments, cash withdrawals, etc., different interest and handling fees will be incurred. The longer the installment period, the more interest charges will be incurred. If the cardholder uses a credit card to cash in, certain handling fees will be incurred, and the proportion of handling fees charged by each bank is different.