Credit card installment repayment is ok. As we all know, repayment pressure is high after large credit card consumption, and installment repayment effectively relieves the financial pressure of card friends. But why are banks so enthusiastic about installment repayment? Did I make a profit or lose? What are the disadvantages of credit card installment repayment for us? one of the pitfalls of credit card installment repayment: the handling fee bank has always been very enthusiastic about the credit card installment repayment business. Whenever you just have a large amount of credit card spending, the bank will send a text message telling you that you can repay the loan in installments with a light reply. But have you really figured out its use cost? Suppose you spend 12 yuan, and then repay 1 yuan every month. If the handling fee is monthly, it will be deducted from the monthly handling fee. In the eyes of many people, it seems that the expected annualized interest rate for the coming year is only slightly higher than the expected annualized interest rate for bank loans, which is actually very cost-effective. But we should pay attention: interest and handling fee are not the same. Because you are paying back the principal every month, the funds occupied by the bank are getting less and less, so the interest to be paid back by normal bank loans is getting less and less. But the handling fee for installment repayment is always the same. We don't always owe the bank 12 yuan. In the last month, we actually owe the bank 1 yuan, but we still have to charge a handling fee of 12 yuan, which is equivalent to the expected annualized interest rate converted from the borrowing cost in 1 yuan! On average, the real expected annualized interest rate that borrowers have to pay is much higher than that of normal loans. Some credit card malls also advertise that they can purchase goods in installments with zero expected annualized interest rate. Banks are now vigorously promoting credit card cash installment business, and customers can immediately apply for tens of thousands of yuan in cash with credit card quota. However, the handling fee is higher than the shopping installment bill, and the annualized interest rate is expected to be close to 2%. No wonder banks still encourage cash installment under the tight credit situation.

the second trap of credit card installment repayment: get into the bad habit of using credit cards. After credit card installment, the repayment pressure allocated to each month will naturally be much less. This makes it easy for card friends to have the illusion of "easy repayment", and the credit card is even more unrestrained. In the long run, it is easy to develop bad consumption habits, which will lead to living beyond our means and serious overdue consequences. The disadvantages of credit card installment have been analyzed for everyone. However, in the process of actually using the card, how to choose should be decided according to the actual situation of the card friend.