Currently, the usage rate of credit cards is very high. Many people also prefer to use credit cards for consumption. Moreover, credit cards can also be used for installment payments, which can relieve us of some financial pressure. Speaking of repayment methods, credit cards generally use several different repayment methods, of which the minimum repayment is one of them. What is the minimum payment? That is to say, we are temporarily unable to repay the entire bill amount consumed this month, so we can repay it by paying 10% or 5% first. Some people will find this method very convenient. Yes, this will indeed be convenient for us, but there will also be some minor problems. Let’s take a look.

Generally speaking, the minimum repayment amount stipulated by banks is 10% of the monthly consumption amount. Some banks will also stipulate it as 5%. There may be certain differences between each bank. If we can repay this part of the amount, then we can pay the remaining funds in installments. At this time, there will be no claim of breach of contract. Those bills paid in installments are essentially equivalent to a "loan" from the bank. Since it is a loan, a certain amount of interest must be paid for it. However, you should pay attention at this time. The interest rate of this loan is not low, which is equivalent to an annual interest rate of 18%. Such high interest rates are indeed a bit overwhelming, so if you want to choose the minimum repayment, you must consider this.

Do you think this is over? Not really! If you make the minimum payment on your credit card for three consecutive months, you have to accept an unfortunate fact - full penalty interest!

What does it mean?

This means that if you do not repay the amount within the specified period, interest will be calculated even on the amount you have paid before. To put it another way, even if you choose the minimum repayment, the interest will be calculated based on the overall consumption bill amount when calculating interest.

Therefore, I would like to advise everyone here to consume rationally and avoid a series of adverse consequences caused by excessive consumption. That high interest rate is also our hard-earned money.