Author | Kuning Consulting

Many people often have two major misunderstandings after their credit card expires.

Misunderstanding 1: After it is overdue, you don’t take it seriously and ignore it, thinking that it will be fine if you don’t pay again later. To put it simply, you don’t know how the interest penalty is calculated.

Misunderstanding 2: "After the due date, I really have no money, but I pay tens or hundreds of dollars every month, which shows that I have the willingness to repay, and it is not a malicious overdraft

According to surveys, most young people now basically hold more than 3 credit cards, and there are also a lot of various online loans under their names. Because of the major epidemic in 2020, people across the country have entered credit cards. During the highly overdue period, according to data released by the central bank, as of the end of 2020, the total amount of overdue credit card debt has reached 91.8 billion yuan, an increase of 23% from the first half of the year, but it is also a record high compared with previous years. This reflects the fact that it is becoming more and more difficult for cardholders to repay their debts!

There will be new rules for overdue credit cards in 2021. Whether it is a credit card or a loan that is not repaid, there will be relevant new rules to punish these defaulters. Let’s take a look at the regulations on non-payment of debts in 2021.

Regarding the regulations on overdue repayment of credit cards:

According to Article 70 of the Measures for the Supervision and Administration of Credit Cards of Commercial Banks? It stipulates that under special circumstances, if it is confirmed that the amount of credit card debt exceeds the cardholder's repayment ability, and the cardholder still has the willingness to repay, the cardholder can negotiate an interest-free installment repayment agreement with the card-issuing bank, and personalized installment repayment is the best option. The long term shall not exceed 5 years.

1. Liquidated damages replace late payment fees.

The charging standard is 5% of the unpaid portion below the minimum repayment amount. The advantage of liquidated damages is that they are eliminated.

2. Credit card sentencing standards have been raised

Overdue credit cards may be subject to criminal liability. If the cardholder maliciously overdues the credit card, it may constitute a credit card violation. He was prosecuted for fraud, and the sentencing standard for credit cards will be increased from 10,000 yuan to 50,000 yuan (single card principal, excluding penalty interest)

3. The minimum repayment amount is less than 10

The overdue repayment amount of a credit card is not necessarily 10. After the new regulations, the minimum repayment may be lower than 10, or even lower, depending on the bank's policy

4. Interest-free. The longest installment can be up to 60 months

Before the new regulations, the minimum interest-free installment was 20-50 days. After the new regulations, the interest-free installment can be up to 5 years, that is, 60 months to repay the debt. It takes The cardholder and the bank negotiate and reach an agreement.

5. Credit card cash withdrawals are included in the minimum repayment.

The new stipulation is that the amount of cash withdrawals in the current month will be included in the monthly statement, and the minimum repayment amount must be paid once. Pay it off promptly, otherwise it will be counted as overdue.

Personalized interest suspension installments for overdue credit cards, five major support policies:

First: Stop collection!

Second: : Stop the increase in interest and liquidated damages!

Third: Stop the risk of prosecution!

Fourth: Reduce the interest and liquidated damages that have been incurred (different bank policies vary)!

Fifth: Negotiate personalized interest-stop installment repayment, which can be divided into up to 5 years and 60 months!

Finally, you must adjust your mentality after going into debt and don’t break the pot! Under the premise of being allowed by the law, I will try my best to make money. I believe that I can pay off the debt if I have the ability.

Dear friends who have overdue cards, it will be a matter of time before they land, so come on!

Author | Jinning Consulting

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