Is it better to pay the credit card bill in installments or the minimum repayment amount?
It is more cost-effective for users with short-term financial constraints to use the minimum repayment amount, and it is more cost-effective for users with long capital turnover cycle to use installment repayment. How to choose depends on your own situation.
The specific analysis is as follows:
1. Comparison of repayment amount: the minimum repayment amount of a credit card is 10% of the current bill, that is, the current bill has to be repaid 1000, and the minimum repayment amount is only 100. The repayment will be carried out in three phases, and the monthly repayment amount is above 300, so users with small credit card repayment amount are suitable for the minimum repayment amount.
2. Comparison of repayment period: the repayment period of the minimum repayment amount of a credit card is from the remaining repayment date to the next billing date, and the principal plus interest needs to be paid off in full. Repayment by installment means that the cardholder repays by installment, and then pays a fixed amount every month, with no interest, but there is a handling fee, so users with long repayment cycle had better repay by installment.
3. Interest comparison: the minimum repayment of a credit card needs to pay five ten thousandths of interest every day, and it is collected by rolling interest. After one year, the interest rate is very high. Installment repayment means fixed interest every month. After one year, the handling fee is still not high, and users with tight funds can use the minimum repayment amount.