Recently, the Economic Daily reported that a certain credit card holder in Chongqing applied for a credit card more than 10 years ago and had an overdraft of 200 yuan. Now I have received a notice from the bank, including the accumulated liquidated damages and overdue penalty interest, I already owe the bank more than 30,000 yuan.

Why does an overdue debt of 200 yuan accrue more than 30,000 yuan in interest? Are bank credit cards also high-interest loans with "compounding interest"?

It is understood that most banks currently define overdue as "failure to repay the minimum payment before the due payment date", and the overdue penalty collection method adopted by most banks is "full amount of liquidated damages" Penalty interest".

So below, Inner Finance will do the math for you. How to calculate the overdue interest on bank credit card overdrafts:

Generally speaking, each bank will charge a certain amount for overdue repayment. The interest rate varies from bank to bank, but it is generally 50% interest. However, the interest accrual date is calculated from the date of consumption, not the date after the final repayment date.

However, under special circumstances (such as overdue repayment), according to the "Credit Card Business Management Measures", credit card overdraft interest will be calculated at a daily interest rate of 0.05% within 15 days from the date of signing or bank accounting date. , if it exceeds 15 days, the daily interest rate will be calculated as 10%. If it exceeds 30 days or the overdraft amount exceeds the prescribed limit, the daily interest rate will be calculated as 15%. Overdraft interest is not calculated in stages, but is calculated based on the highest interest rate bracket for the final term or the maximum overdraft amount.

For example, if this cardholder owes 200 yuan and is overdue for 10 years, then assuming that the highest grade "15/10,000" is used, the converted annual interest rate is 54.75. Calculated based on compound interest, 10 Overdue penalty interest of RMB 15,752 will be required after the year. (Since 2017, the overdue penalty interest has been changed to a unified upper limit of 5/10,000, so the original policy calculation is adopted here)

The calculation formula for credit card penalty is: Repayment penalty (minimum repayment amount - 5% of the amount paid as of the due date. Under normal circumstances, credit card default penalties are charged at 5% of the unpaid portion of the minimum repayment amount. However, each bank has different standards for charging liquidated damages. The standards for charging liquidated damages of the card issuing bank should prevail.

For example: The total repayment amount due to the cardholder's bill settlement on July 7 is 2,000 yuan, the minimum repayment amount is 200 yuan, and the due date of repayment is July 27. The cardholder paid back the credit card balance of 100 yuan on July 27. Since the cardholder did not pay off the minimum payment amount before the due payment date, the bank will charge a penalty of 5 yuan in the August bill.

For overdue credit cards, banks generally provide a grace period of about 3 days. Once it exceeds 3 days, it will be recorded in the credit reporting system. Among them, the credit card repayment grace period is a natural day, not a working day.

According to incomplete statistics, the current repayment grace period provided by Bank of China, Postal Savings Bank, Minsheng, China Everbright, Ping An, CITIC, Shanghai Pudong Development, Industrial Bank, Hua Xia and other banks is generally 3 days. Individual commercial bank platinum card customers for 9 days. Therefore, cardholders must remember the repayment date of the credit card in their name and never overdue it.

At the same time, when using a credit card, you should understand the corresponding overdue penalty terms to minimize unnecessary disputes and losses. #creditcardpenaltyinterest#