1. How to repay an overdue credit card

1. The cardholder has the ability to repay the loan

For cardholders, it is of course better to repay the full amount at one time if the credit card is overdue. Remember that not only the principal must be paid, but also the penalty interest and liquidated damages incurred. If there are unpaid installments, as long as the bank does not require full repayment, then you should continue to repay on time. After all, early repayment will not be free of handling fees, which is not cost-effective.

2. The cardholder has insufficient repayment ability

If the cardholder has no money to repay, he cannot leave it alone. Otherwise, the longer the overdue period is, the more interest will be generated. You can try borrowing money from relatives and friends and repay it, or you can confess and repay it together with your family. If there is really no other way, try negotiating with the bank for repayment. You need to provide reasonable reasons and focus on the overdue reasons due to force majeure. Only then can the negotiation be successful.

2. How much is the overdue interest on credit cards?

It is understood that credit cards usually have an interest-free period ranging from 20 to 50 days, but if the cardholder fails to pay during this period, If you pay your bills on time, the bank will charge interest on overdue balances. There are currently two ways to calculate interest on credit cards, one is full interest calculation, and the other is segmented interest calculation.

1. Full interest:

Also called full penalty interest, which means that the cardholder fails to repay the entire amount on the due date, that is, from From the date of consumption to the date of full repayment, recurring interest will be calculated at 50,000 per day.

Li Xiaodong’s CCB credit card accrued more than 300 yuan in interest if it was overdue for 10 days. This is because the CCB credit card uses a full penalty interest calculation method.

In addition to China Construction Bank, the credit cards of eight banks including Industrial and Commercial Bank of China, Hua Xia Bank, China Merchants Bank, China Guangfa Bank, and China CITIC Bank also use the full penalty interest calculation method.

2. Calculation of interest in installments:

That is to say, interest is calculated only on the overdue portion. The calculation method is also from the date of consumption to the date of full repayment, on a per-unit basis. The recurring interest is calculated at 5/10,000 per day.

Currently, only three banks in the market, Industrial and Commercial Bank of China, Agricultural Bank of China and Shanghai Pudong Development Bank, implement segmented interest calculation.

Regarding the collection of overdue liquidated damages, except for ICBC which charges 10% of the minimum repayment amount and China Guangfa Bank which charges 10% of the unpaid portion of the minimum repayment amount, other banks all charge 5% of the unpaid portion of the minimum repayment amount. % charge liquidated damages.

In addition, many banks have also set collection limits for the collection of liquidated damages. Among them, the minimum collection limit for liquidated damages of China CITIC Bank, Industrial Bank, and China Guangfa Bank is 20 yuan. This means that even if the cardholder's actual overdue penalty is 5 yuan, a minimum penalty fee of 20 yuan will be charged.

3. What will be the impact of an overdue credit card?

1. Telephone notification. The first few phone notifications will usually be made by the credit card customer service center customer; if the collection is unsuccessful, then The card issuing bank will entrust the collection business to a third party, and a third-party specialized collection company will handle the collection. The method is to send text messages, bombard phone calls, and even door-to-door collection. But it is a bank after all, and it will not let the collector do anything too outrageous; if this still does not allow the cardholder to successfully repay the loan.

2. The cardholder will receive a summons from the court, and the court will also assist the bank in collecting the money. However, the court will not directly make the card holder bear the corresponding legal responsibility. It will first investigate the card holder and carry out corresponding persuasion work to urge the card holder to repay. If the cardholder still refuses to repay and does not come up with a specific repayment plan, the court will enforce it; enforcement means that if the cardholder has assets, the cardholder's assets will be used to liquidate the money owed to make up for the debt. Credit card debt. Such as querying, freezing, and transferring the deposits of the person being applied for execution, sealing, detaining, auctioning, and selling off the property of the person being applied for execution, etc. However, when these measures are taken, the necessary living expenses of the person subject to execution and his dependent family members will be retained.

If you cannot find a suitable lawyer to help you with issues related to overdue debt, please click the consultation button on the page and we will arrange professional lawyers to answer your questions.