Las Credit cards They work as a great financial help when the money in your checking account begins to decrease as the month goes by. However, it is a double-edged sword if you take into account the interest that banks charge for non-payment or minimum and/or partial payment of the statement. Thus, It is essential to know what the due dates are and what happens if I do not pay the summary in full.
If the credit card is not paid in full, the bank will automatically begin to charge very high interest that will be applied to the amount owed. With the change of government, these interests increased and today it is even more difficult to catch up after several months of only complying with the minimum payment.
After the publication of the Decree of Necessity and Urgency, The Central Bank raised the interest rate that will be applied to refinance credit card debts and, as a consequence, the Credit Card Law underwent several changes. Communication “B” 12691/2023, published in the Official Gazette, established that the percentage applied to users who do not comply with the total payment of the monthly summary will amount to 140.86% monthly average by amount and measured in nominal percentage. annual.
What happens if I don’t pay the credit card in full?
Among the main changes to the Credit Card Law, several limits were eliminated: the rate charged to businesses (3% in the case of credit cards and 1.5% with debit cards), and the punitive interest that may be charged to customers for non-payment. In addition, sanctions on companies that do not report the interest rate were also repealed.
Although it may seem like a great option to delay the payment of the credit card and avoid having to pay the total, the minimum payment is one of the most serious mistakes that the client can make, since over time interest will be generated that will be increasingly difficult to pay. The final figure will be made up of: the amount owed, interest, taxes and commissions.
What happens if I don’t pay the credit card in full?
The Ministry of Justice, through its website, explains that “if when your account statement expires you do not pay anything, not even the minimum payment, you will be in default. The card will charge you 2 types of interest: compensatory and punitive.” .
What happens if I don’t pay the credit card in full?
“Due to non-payment, the card may be disabled until you pay the debt. The contract you sign when you receive the card must clarify what the causes of suspension of the card are,” he adds.
What is partial payment and minimum payment
- Partial payment: It is a payment that goes beyond the minimum but does not reach the total of that month’s summary. That outstanding balance will generate interest. The calculation is subject to the amount remaining pending and the delay in cancellation.
- Minimum payment: When you receive your card account statement, you will find the option to pay your debt in full or make a minimum payment. It is essential to keep your card up to date to make at least the minimum payment required.
However, it is important to note that If you choose only the minimum payment, interest will be generated on the remaining balance, since the card will be financing your expenses. Additionally, penalty interest may apply if you do not meet the minimum payment stipulated in your statement.
In this sense, law 25,065 in its article 16 establishes that “the limit of compensatory or financial interests that the issuer applies to the holder may not exceed by more than twenty-five percent (25%) the rate that the issuer applies to the personal loan operations in current currency for clients”.
“In the case of non-bank issuers, the limit of compensatory or financial interest applied to the holder may not exceed by more than twenty-five percent (25%) the average rates of the system for personal loan operations published from day one to five (1 to the 5th) of each month by the Central Bank of the Argentine Republic”, he adds about the Credit cards.
2024-03-06 13:06:30
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