When the family income is stable, appropriate debt levels can and should be maintained. A relatively healthy family financial structure should have assets and liabilities coexisting. Among them, a debt ratio of 30-50 is within the acceptable range. Moderate debt is conducive to activating the currency "leverage effect" to a greater extent and obtaining more returns.

However, if the debt seriously exceeds the income level, it is more dangerous. If you are not careful, you may be trapped in the shackles of debt and never be able to get rid of it.

"With a monthly income of 3,000, how to pay off 200,000 in credit card debt?"

Pomegranate Jun often sees titles like this. In the past, he would have thought it was a gimmick for self-media articles, but After meeting more people, Mr. Shiliu learned that there are really not a few friends who have low incomes but are burdened with hundreds of thousands of credit card debts.

A friend told Mr. Pomegranate that he owed hundreds of thousands of credit card debts due to the failure of his business. His income was not guaranteed and the credit card debts could not be paid off, and he had been earning compound interest. Some friends also said that they had high credit card debts because they lost money in gambling, and they were under great pressure to repay the debts.

No matter what the reason is for being in a "card slave" situation, how to pay off the debt as soon as possible and get rid of the shackles of debt is the issue that everyone is most concerned about.

Here are some common mistakes.

Wrong approach 1: Repay according to the minimum repayment amount

When the cardholder cannot repay in full, the bank allows the cardholder to repay according to the minimum repayment amount. , the minimum repayment amount is generally about 10% of the total amount of the bill. As long as the minimum payment is paid, it is not considered overdue. This sounds wonderful, but in fact it is nothing short of a chronic poison.

Although overdue payments are not recorded, repayment according to the minimum repayment amount will accrue interest. The daily interest rate of all banks is 0.05% (except for certain card types), and interest is compounded monthly. The bank hopes that cardholders will repay according to the minimum payment amount so that it can collect interest. You know, most Chinese cardholders are conservative and cautious, preferring to repay in full. As a result, the bank cannot receive interest, and the bank complains again and again. For those cardholders who cannot repay in full for the time being, repaying according to the minimum payment amount is really the worst policy.

In addition, if you often repay the minimum repayment amount, in the eyes of the bank, the income level of such cardholder does not match the overdraft consumption habit. In order to control the risk, not only will it not give you an increase, Maybe even derated.

Mistake 2: Keep making installments

Another common repayment method is to repay in installments. Banks all claim to offer zero interest in installments, but there are handling fees for the installment repayment business, and the handling fees are equivalent to interest.

Pomegranate Jun has calculated it for everyone before. The actual annual interest rate converted from credit card installment fees is not low, generally above 10, and some are even as high as 13-16.

For some young friends, they have a strong desire to consume and lack self-control. They are prone to excessive consumption. Frequent installment business will "hide" part of the debt, making it easier to encourage excessive consumption. consumption, so it is also risky.

Wrong practice three: Cashing out by credit card

Cashing out by credit card is "card for card", which is of course illegal or even illegal. The general handling fee for machines on the market is 0.6-0.65, or even higher. The cashed-out money can be used interest-free for up to 50 to 56 days, and must be repaid upon maturity.

Many cardholders cannot repay on time, and they need to cash out from other credit cards to make up the hole, and they have to bear a handling fee of 0.6-0.65, and so on, every interest-free period You will have to bear the first handling fee.

In addition, once the credit card cash-out is recognized by the bank, the credit limit will be reduced or the card will be blocked, or legal liability will be pursued.

If a cardholder is suspected of credit card fraud and the amount is relatively large, he shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan; if the amount is huge or there are other serious circumstances If the amount is particularly huge or there are other particularly serious circumstances, the sentence shall be not less than five years but not more than ten years in prison and a fine of not less than RMB 50,000 but not more than RMB 500,000. A fine of not less than RMB 500,000 but not more than RMB 500,000 or property confiscation may be imposed.

Wrong practice 4: Use high-interest debt to pay off credit card debt

Some cardholders use the limits of products such as Juebei and Weilidai to repay credit card debt.

First of all, the rates of products such as Jiebei and Weilidai are not lower than those of credit cards, and a "handling fee" may be added to the cash-out process. Handling these businesses at the same time will also be subject to credit reporting. If cash-out or other improper use behavior is identified, the loan will also be subject to reduction or capping, leaving a bad record and affecting other loan businesses in the future.

Some cardholders are anxious to seek medical treatment and borrow high-interest debt to repay their card debt. This is because high-interest debt is often easier to repay, such as the well-known P2P online loans and cash loans. Loan and so on. In addition to high interest rates and high fees, they are often accompanied by violent collections.

If repayment according to the minimum payment amount is a chronic poison, then this method of repayment with high-interest debt is extremely poisonous.

Wrong approach 5: Run away

Another approach is to refuse to repay the debt and risk yourself to become a "laodai". Doing so is tantamount to directly ruining a possible comeback opportunity. Regardless of the fact that "old people" are restricted from high consumption, cannot take planes, high-speed trains, etc., just a credit blacklist and being unable to apply for a loan will have a huge impact. I have lost my loan qualifications, my credit is bankrupt, and I want to turn around. Is it that easy?

In addition, for serious credit card debts, the bank will pursue legal responsibility after the collection fails, and some may be sentenced to several years in prison.

……

The above practices need to be avoided. For friends who are already deep in credit card debt, Mr. Pomegranate has the following suggestions:

(1 ) Low-interest debt replaces high-interest debt

The credit card rates of various foreign card issuers vary greatly. The cost of debt can be reduced by transferring high-interest card debt to low-interest card. However, the credit card rates of various domestic banks, especially overdue interest rates, are basically the same, so the transfer is meaningless. Fortunately, the domestic credit card reimbursement business is very prosperous, and you can use this business to reduce debt costs.

When applying, you need to compare the rates offered by various compensation agencies horizontally, choose the one with the lower rate, and also pay attention to whether there are other business service fees and other fees.

Another way is to concentrate card debts on credit cards with the lowest installment fees, such as ICBC credit cards, and then concentrate on installments, which can also reduce debt costs to a certain extent.

(2) Interest-free borrowing to pay off credit card debt

The best way is to borrow money from relatives and friends. This kind of debt usually does not have interest. In the face of huge debt, "face" is not so important. Paying off the debt as soon as possible is the most important. If you can borrow money without interest, it can help you save a lot of debt costs.

(3) Control expenses and increase income

It is easy to go from frugality to luxury, but it is difficult to go from luxury to frugality. Don’t underestimate the significance of frugality. When you are burdened with huge debts, the only correct way to get rid of your card slave status is to reduce your consumption needs and pay off your debts as soon as possible. If you can also find ways to increase your income, you can speed up the pace of debt repayment.

Here, Mr. Pomegranate is going to start the "A Friend" series, and he is going to mention a friend in college who is a girl.

The girl liked to spend money, but her family conditions were average. In order to satisfy her desire to spend money, when a bank came to the university dormitory to sell credit cards, she decisively applied for one. After that, the rhythm of buying, buying, buying started happily. She usually only pays the minimum payment amount on the monthly repayment date, and she can pay it in installments as much as possible. After almost a year, the debt figure has become so high that she dare not even look at it.

As she neared graduation, she received an admission notice from a foreign university. The scholarship was very small, and her family finally helped her pay for her study abroad. She was embarrassed to let her family bear her credit card debt again. Two months before graduation, she suddenly came to her senses and began to live frugally. She had never worked a part-time job and even found a few tutoring jobs. It is difficult for classmates to see her again. It took her two months to pay off nearly a year of credit card debt, which was very impressive. It can be seen that human potential is unlimited, what is lacking is the determination not to be a card slave.

Finally, I hope that friends who are trapped in credit card debt can break free from the shackles as soon as possible!