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Credit cards (debit cards) have minimum repayments for 2 years, and the interest rates are astronomical!

In the past, banks recommended credit card (debit card) installments to customers, but now they are beginning to promote minimum repayments. As long as you pay 10% of the current bill amount, you can avoid overdue payments. It seems not bad. But if you repay like this every month, the consequences will be serious. I have calculated that if the minimum repayment on a credit card (debit card) is for 2 years, the interest generated in the middle will be astronomical. Not only that, but there are other negative impacts on cardholders.

What is the minimum interest rate for credit card (debit card) payments?

Don’t think I’m scaring you. You need to know that credit cards (credit cards) are subject to the minimum repayment. The remaining unpaid amount cannot enjoy the interest exemption period, and interest is calculated on the full amount of the bill. Yes, the daily interest rate is 5/10,000, and compound interest is calculated on a monthly basis. Let’s dig into the pit of minimum repayment and let you see how deep the pit is through examples.

Suppose your credit card (debit card) is billed on the 1st of every month, and the 15th is the repayment date. The bill amount is 30,000 yuan, and the minimum repayment amount is 3,000 yuan.

First of all, if you make the minimum payment in the first month and repay 3,000 yuan, then the remaining 27,000 yuan will not be able to enjoy the interest exemption period next month, and the full amount will be charged based on your consumption from that day. It is interest-based. For example, if you consume 300 million yuan on February 10th and the repayment date is March 15th, and there are 32 days in between, you have to pay an interest of 50,000 yuan per day for 32 days. The interest is 480 yuan. This is only the first time. monthly interest.

This interest is much higher than the dozens of dollars you imagined, not to mention the second month’s interest, the third month’s interest, and the fourth month’s interest. , which is calculated based on the consumption amount from the day of consumption, so the actual annualized interest rate can reach 20-30!

If the minimum repayment is made for 2 years, the interest rate is really astronomical. As for how much, I am not very good at math, so I won’t calculate it specifically. Without compound interest, it will be There is more than 400 yuan in interest, maintained for 2 years, think about it for yourself!

Does the minimum monthly payment on a credit card (credit card) affect your credit worthiness?

In addition to the issue of minimum repayment interest on credit cards (credit cards), I often see people ask, does the minimum monthly repayment on credit cards (credit cards) affect creditworthiness? Let’s find out together below.

I can only say that this is not necessarily the case. The main thing is to analyze the specific situation. After all, the impact of credit cards on your credit is mainly caused by overdue payments, but the bank does not clearly stipulate the repayment method. If you have money, it will be fine if you pay it back in full. If you have no money, you cannot pay it off in full. You can choose to pay it back in installments. Either repay the loan or repay the minimum repayment amount. As long as your monthly repayment amount is not less than the minimum repayment amount, even if you repay it normally, it will not directly affect your creditworthiness.

However, don’t forget that paying the minimum repayment amount of a credit card (credit card) every month also has a negative impact. You must know that it is not necessary to repay the minimum repayment amount of a credit card (credit card). Those who will enjoy interest exemption will have to calculate interest at a daily interest rate of 0.05% every month and compound interest on a monthly basis. Calculated in this way, the comprehensive annual interest rate will be at least higher than 20. For example, if you owe 50,000 yuan, you need to prepare a few thousand yuan for principal repayment every month, and you will have to repay tens of thousands of yuan extra after one year. This will put a lot of repayment pressure on yourself.

Many friends repay the minimum repayment amount every month, which was bearable at first. However, as the repayment time went by, the repayment pressure became more and more severe, and finally it was not enough. I can only watch it being overdue, which leads to bad credit and ultimately affects my credit.

It can be seen that if you are short of money in the short term, you can try to pay the minimum monthly repayment on a credit card (debit card). After all, it can solve the problem of short-term financial constraints, but don't do it if the repayment period is too long. Repay in this way. If you really don’t have the money to repay the loan in full, it is also a good choice to apply for credit card (debit card) bill installments. This can avoid interest compounding and reduce the repayment pressure to a certain extent.

In short, everyone should try their best not to touch the minimum repayment of credit card (credit card). If you really can’t repay the full amount on time, just pay the bill in installments. At least the monthly handling fee is higher than the minimum payment. The interest rate is much lower. Although each has its own pitfalls, at least you can enjoy the interest-free period, which can reduce your repayment pressure.