First, how to calculate the overdue penalty and interest of credit cards

Credit cards are bound to face penalty interest, and interest and liquidated damages are one of the costs of overdue.

1. liquidated damages

liquidated damages are calculated at 5% of the unpaid part of the minimum repayment. If you owe 1, yuan, the minimum repayment is 1 yuan, and you pay back 1 yuan, the penalty is 9x5%=45 yuan. Since the late payment fee was revised to liquidated damages, the biggest difference is that it will not be profitable.

this month, you will be liquidated damages in 45 yuan, and the difference will not be too much next month. You will receive it once a month, only affected by the minimum repayment amount, and there will be no circular accumulation. However, ICBC is a special case, and the penalty is 1% of the minimum repayment.

2. Interest

Interest is calculated according to the date after the consumption is recorded and the principal of the whole period, with a daily interest rate of five ten thousandths, which will be compounded cyclically every month. If you owe 1, yuan overdue, you will earn 5 yuan interest every day, but only for the first month. Your interest this month will pile up until next month, and so on.

It is conservatively estimated that if you owe 1, yuan a year and fail to pay it back, the interest generated will be at least several thousand yuan. If the principal is more, the interest will roll faster, which is not a small expense for ordinary people.

second, can the credit card overdue penalty be reduced or exempted?

The overdue penalty is a reasonable charge, which is the case in all banks. Ordinary users should abide by the rules, and the penalty is generally not reduced or exempted. Unless there are the following special circumstances:

1. Force Majeure is overdue

The so-called force majeure is an unexpected situation that happened suddenly without your own will. For example, if you lose your job, you are diagnosed with a serious illness, you have an accident, etc., which are all special circumstances, and you don't want to be overdue. In this way, when you negotiate repayment, you can apply for reduction or exemption of liquidated damages.

if you have nothing to do, delay the repayment time yourself, and have money to play cards, regardless of the credit card, you will definitely have to pay it off honestly.

2. Unexplained charges are overdue

If the bank doesn't explain the charges, and you don't understand the project, the credit card will be overdue, this penalty can be reduced. It is better for everyone to deal with the liquidated damages as early as possible to avoid the more you owe.

Third, will the overdue penalty for credit cards keep rising?

If you don't pay back the money all the time, no matter whether your debt becomes bad or there are any difficult reasons, as long as you don't pay it off or negotiate with the bank to repay it in installments, the penalty will keep rising.

although different from interest, the liquidated damages will not accrue interest, but as your principal rolls more and more, the minimum repayment amount will increase, and the liquidated damages will always be calculated according to the ratio of 5%. Among them, only ICBC has a little conscience and set the upper limit of liquidated damages for each period of 5 yuan.

Although Huaxia Bank also has an upper limit, the upper limit of 2, yuan is not used by ordinary people. That is to say, your liquidated damages will not continue to rise until it rises to 2 yuan per month, while in other banks, your liquidated damages can be raised all the time, as long as you are overdue enough.

If there are still unclear or new situations, it is suggested that you call directly for free consultation, so as to understand the communication case and give you detailed and targeted answers, so as to avoid incorrect answers due to incomplete information and poor communication. I wish the rights protection success.