The credit card installment interest rate is determined by the issuing bank according to the credit conditions of the cardholder. The general monthly interest rate is about .75%, and the annual interest rate is 9%. However, the cardholder owes 1 million yuan to the bank only in the first month. With the monthly repayment, the debt is getting less and less, and only 833 yuan is left in the last month. However, the interest to be borne every month is still calculated according to the total loan amount, and the actual interest rate is much higher than 9%.

Extended information:

For example, the credit card bill is 1, yuan, and the annual rate is .6% * 12 = 7.2% after the monthly interest rate is discounted, which seems quite cheap. If it is divided into 12 installments, the principal to be repaid every month is 833 yuan, with interest.

however, many people ignore that the interest paid by the equal principal and interest repayment method is fixed every month, while the principal is reduced every month, for example, the principal in the first month is 1, yuan, and the principal in the second month is 1,-833 = 9167.

By analogy, by the 12th month of the last installment, the principal is 833 yuan, and the interest is still 6 yuan. The actual interest rate in the last month is 6/833=7.2%, which is many times higher than .6 per month.