Repayment is a problem that everyone must face after spending money with a credit card. If you have plenty of money, it will not be a problem. But what should you do when you encounter financial constraints and are unable to pay off your bills? How to pay off a credit card in the most cost-effective way has become a question that many cardholders are racking their brains to figure out. Today I will explain to you how to pay back the credit card in the most cost-effective way.

Three repayment methods of credit cards. The reason why credit cards issued by banks are so popular is that they have a certain interest-free period for cardholders to make overdraft purchases, and at the same time, they can also enjoy preferential activities and the benefits that come with the card. rights and interests. But the money lent by the bank must be repaid, and it is important to keep in mind the final repayment date to avoid overdue payments. There are several ways to repay credit cards, the following three are:

1. Repay in full Credit card overdraft consumption must be moderate, try to consume as needed, and be able to repay the bill in full on the final repayment date clear. As long as the credit card bill is paid off in full before the final payment date, it is the most cost-effective, because these purchases enjoy an interest-free period and do not need to pay any fees.

2. Minimum repayment amount: On the final repayment day, if the cardholder is tight and does not have the ability to repay the full amount, he or she can choose the minimum repayment amount. The minimum repayment amount is generally 10% of the credit card bill amount. Once the minimum repayment amount is selected, the cardholder will no longer enjoy the interest-free treatment. Most banks adopt a full interest calculation method. Starting from the date when the consumption is recorded, interest will be charged at 0.5% per day, and the interest will be compounded on a monthly basis.

3. If you choose the installment repayment method, the cardholder can repay according to his or her own repayment ability. The bank provides different number of installments, and the cardholder can decide the installment amount and period by himself. number. There is no interest for installment repayment, but there will be handling fees. Each bank has different charging standards, but the larger the installment amount and the longer the period, the higher the fees will naturally be.

Summary of the most cost-effective way to repay credit cards: Credit card repayments, no matter which method the cardholder chooses, can effectively avoid credit card overdue. As for which repayment method to choose, specific issues must be analyzed in detail. Follow the principle of "repay in full if you can. If you cannot repay in full, choose installments for large amounts, and choose the lowest amount for small amounts."