Whether the credit card bill should be paid in installments depends on whether the customer has the ability to pay off the consumption amount at once, and will not cause financial pressure by paying it all in one go. When a bank customer service staff calls a customer to repay a loan in installments, the decision-making power lies not with how sweet the customer service voice is, but with the cardholder. If he or she is under financial pressure, he or she will pay in installments, or if he or she has the ability to repay the loan, he or she will refuse.

1. If the bank customer service calls you non-stop, you will make money if someone agrees

If the bank customer service calls a hundred times, it will be good if there is one person who can handle the installment. That is to say, 100% Ninety-nine customers will refuse installments, but if one of them can, the bank will make money.

For example, a customer spent 10,000 yuan. After the bill came out, the bank customer service called and asked the customer to repay in 10 installments, with the principal of each installment being 1,000 yuan. The bank said that the handling fee for each installment was 0.6%. The monthly interest is 60 yuan: the handling fee is 10,000*0.6%=60. The principal continues to decrease by 1,000 yuan every month, but it still requires a handling fee of 60 yuan, and the installment fee is 720 yuan in one year! In this way, the bank made money by selling installment repayments through a phone call, turning the credit card with no interest and free period into a small loan with interest.

2. Benefits of credit card installment

First, it is helpful to increase the credit card limit. In order to increase credit card limit for customers, many banks use installment repayment as a reference and change the direction to allow customers to use installment repayment. Customers with installment repayments are more likely to get quota increases.

The second is to help reduce repayment pressure. Especially for some people who earn money and young people who have not been working for a long time, they cannot save money and want to spend more than they want. They can enjoy their consumption in advance. Installment repayment can reduce the financial pressure of these customers.

The third is to enjoy bank installment discounts. Many banks are offering installment interest rate discounts, calculating interest at a discount based on the original interest rate, making customers more willing to pay in installments.

3. Disadvantages of credit card installments

First, too many installments cause confusion in repayment and are easy to forget. I originally had five or six credit cards, or even a dozen, but suddenly an installment came with a long term. In this fast-paced life, it is easy to forget to repay, causing unnecessary overdue payments.

The second is to bear certain interest expenses. The original purpose of installment is to reduce the pressure of expenditure, but each installment has to bear a certain cost, which invisibly increases the financial burden. There is really no free lunch in the world!

Third, it is easy to spend lavishly. Some people have a mentality of excessive consumption in advance. Anyway, they repay in installments and consume first. If they spend more, they will exceed it. The installments will accumulate more and more, and in the end they may not be able to turn around.

Personally, I still don’t recommend installment. You can consume as much as you can afford, and you cannot always consume ahead of schedule and then pay in installments. We still advocate moderate consumption and reasonable consumption. Why pay in installments if you can afford it, and pay handling fees.