Minimum repayment: Interest is still calculated on the total amount, and interest is compounded.

Mr. A has been using credit cards for many years, but he does not know that even though he pays the minimum monthly payment, the bank charges interest based on the total consumption. Mr. A said: I always thought that interest was calculated based on the unpaid portion.

Repay according to the minimum repayment amount given by the bank (generally the total consumption is 10), and you can maintain a good credit record. According to the regulations of most banks, interest will be charged on the entire consumption amount at a daily interest rate of 0.5% from the date the consumption is recorded, and compound interest will be calculated on a monthly basis. Currently, only a few banks calculate interest on the remaining portion after repayment.

Let me give you an example: if you spend 3,600 yuan by swiping your card, the minimum repayment amount is calculated based on the ratio of 10 yuan to the principal, and the minimum repayment amount is 360 yuan. If you pay all the outstanding balance before the final payment date, you will not have to pay interest. If only the minimum repayment amount is paid, an interest of 0.05% per day will be incurred

(3600×0.05×30=54 yuan). If the remaining balance of 3,240 yuan is not paid off before the next bill date, recurring interest will accrue at a daily interest rate of 0.5%. These interests will be included in the principal and continue to be calculated, resulting in monthly compound interest. In other words, if you always use the minimum repayment method, the longer the debt is in arrears, the interest will compound and the repayment pressure will be greater.

Instalment repayment: The longer the installment, the higher the handling fee.

Instalment repayment is interest-free, but you need to pay handling fees. The handling rates of different banks vary greatly. Most banks' installment payment fees are determined based on the length of the period, such as 3 installments, 6 installments, 12 installments, etc. Generally, the longer the term, the higher the handling fee standard. There are two ways for banks to collect handling fees. One is to collect the handling fee in an average monthly basis; the other is to collect it in one lump sum when paying the down payment.

If we still calculate based on consumption of 3,600 yuan, we will submit a consumption installment application to the bank after swiping the card. The first type, the number of installments is 12, if the handling rate is 0.6%, the monthly repayment amount is: 3600×0.6% 3600/12=321.6 yuan, and you only need to repay 321.6 yuan every month without having to Pay other fees. The second type is divided into 12 installments. The first installment of the bill must be repaid: 3,600 yuan × 7.2 3,600 yuan/12 = 559.2 yuan. The remaining 11 months also require monthly repayments of 300 yuan.

So despite the banner of interest-free, you can see that the cost of installment payment is not low.

So when it comes to choices, the editor recommends that friends make different choices based on the amount of debt they owe.

There is actually no precise definition of which of the two methods is better or worse. The editor believes that for debts that are larger than Feng Jiao and cannot be paid off at once within a long period of time, in order to prevent interest compounding, the cost of installment repayment is relatively low. For those with a lower amount, the consumption recording date is very close to the final repayment date, and can be repaid within a relatively short period of time, it is more cost-effective to choose the minimum repayment amount. However, full repayment is still the safest. Other repayment methods generally involve interest, late payment fees, handling fees and other fees. The cost is higher, and it is easy to develop bad habits. Be careful to become a "card slave" . Therefore, you should act according to your ability when swiping your card, and do not overspend and lose interest in vain.