When you choose the minimum repayment, the interest on the credit card needs to be calculated based on RMB 50,000. The principal of RMB 50,000 will generate interest of RMB 25 per day, and the minimum repayment amount is RMB 5,000.

For credit card repayments, the minimum repayment is a very uneconomical form. Not only does the interest rate be high, but the subsequent repayment pressure will also increase.

1. How to calculate the minimum credit card repayment.

For example: You use a credit card to pay 50,000 yuan. If you want to make the minimum repayment, the premise is that you only need to repay 10% of the principal of 50,000 yuan, which is 5,000 yuan.

In this case, you will have to pay interest of RMB 50,000 every day after your repayment date. That is to say, you have to calculate the daily interest based on the principal of RMB 50,000, multiplying RMB 50,000 by RMB 5. That’s 25 yuan of interest per day.

Calculated based on a 30-day month, the principal of 50,000 yuan will generate an interest of 750 yuan for you.

2. Disadvantages and advantages of the minimum repayment method.

Generally, the minimum repayment method is chosen because the borrower can know that the required payment will be received within one month, and the existing cash flow is very tight, so he will choose to bear such a payment. Choose the lowest payment for interest.

The disadvantage of the minimum repayment is that no matter how much you repay, the daily interest will be calculated based on the entire loan principal. This means that if you repay 5,000 yuan, the daily interest will still be calculated based on 50,000 yuan.

The advantage of minimum repayment is that it is better than overdue payment, because the minimum repayment only buys you one more billing cycle, and such an operation will not go up in the credit report.

3. Installment repayment can solve the repayment pressure.

If you have already considered the minimum repayment, I personally suggest that you consider repayment in installments. After all, repayment in installments is much less stressful and the time period is relatively long.

However, installment repayment will also generate a lot of interest, which is a helpless move, so consider it yourself.

Conclusion: I have told you the calculation method of the minimum credit card repayment. If you have any other questions, please feel free to ask.