Many people are accustomed to the minimum monthly repayment. In fact, this type of repayment has many disadvantages that we are not aware of, and it will also be the beginning of interest compounding, making it possible to pay off the debt that could have been paid off in one year. , it will take two to three years or more to pay off.

What is the impact of the long-term minimum repayment of a credit card?

1. Impact on the amount increase

The minimum repayment amount stipulated by the credit card is to allow customers to temporarily use funds. You can temporarily tide over the difficulties when the turnover is insufficient, but this does not encourage customers to use the minimum repayment amount. Repaying the minimum repayment amount will not cause overdue payment, but it is never too late. If the minimum repayment amount is used for a long time, the bank will I think you are short of money and the risk of breaking the contract is relatively high, so I don't dare to increase your quota.

2. The interest is getting higher and higher

But the minimum repayment is obviously not done on the repayment date, which also means that the unpaid money will continue to be calculated. Interest, not only will the principal accrue interest, but the interest will also accrue interest. As the interest accrues every month, the bank will default on your interest.

3. The debt is too high:

If you pay the minimum monthly payment, most of the principal will be retained; if you make the minimum payment next month, it will accumulate for two months For a long time, as the backlog of debt increases, your minimum repayment will become higher and higher. By then, you will not be able to repay even the minimum repayment. By then, your debt has reached a monstrous peak.

4. Reduce the limit and block the card

If you use the minimum repayment amount of your credit card for a long time, some banks will think that you do not have enough financial strength and may reduce your credit card limit and cause overdue payment. In this case, the card will also be blocked, which is equivalent to being blacklisted by the bank.