The prices that rise almost daily, the inflation that is expected to be around 30% for December, and all the windows that open around this very pressing context for ordinary people. Among all the worries that plague dailycredit card payment is one of them. What happens if I pay the minimum, how much is the rate that banks charge for these unpaid consumptions, what is the situation since January 2024.
After the publication of the Decree of Necessity and Urgency drafted by the government of Javier Milei, the Credit Card Law underwent some modifications which leave the defaulting consumer in a more complex situation.
One of the most common mistakes is paying the minimum monthly statement. This exercise, which is always inadvisable, will from now on be even more expensive and will make the debt difficult to overcome.
What is the minimum credit card payment? According to the banking definition, “is the smallest amount required by your bank to keep the credit current on your credit card, without reporting you in arrears.
How is this minimum required so that the plastic does not remain suspended? That figure is mainly made up of: interest, taxes and commissions, and generally means 10% of the total debt. In that sense, the problem is that, if this system is used over time, it can take years to pay off the debt.
In reference to credit cards, Milei’s megadecree eliminates several limits: one of them is the rate charged to businesses (3% in the case of credit cards and 1.5% in the case of debit cards ), and punitive interest that may be charged to clients for non-payment. In addition, sanctions are repealed for companies that do not report the interest rate.
Until now, these interests represented a rate of 122% annual (that is, 11% monthly); after release it would become much more expensive and for some experts it could mean up to 400% annually.
Although it is not advisable to sustain it over time, by opting for the minimum payment the user “stays up to date” and prevents the plastic from being disabled. Furthermore, as the banking entities explain on their websites, “This payment does not affect credit status.”
Ways to pay the card statement
Full payment: the total sum of that month’s summary is paid (all installments with interest included if any, plus bank administrative expenses).
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: Another option is to make a minimum payment, the amount determined by each card according to the month’s consumption and which must be made to avoid legal problems. If the minimum is not paid after a considerable amount of time, the plastic blocks.
2024-01-05 14:46:04
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