The credit card revolving has changed. And now?

Receiving a “salted credit card bill” at the end of the month and if you can pay a minimum amount, with no deadline to settle the total debt, is it priced and it very high. Who already resorted to the credit card revolving knows very well how much it costs. With the high interest rates that were charged to those who chose to pay the minimum, life only grew and often became unpayable. To remedy the situation, the National Monetary Council (CMN) decided to interfere, imposing a 30-day limit on the use of the revolving system. The new regulation completed a month in effect and if you used the rotary in this period, the time has come to adapt. That is, time to decide between the full payment of the invoice or the installment payment. This change decreases the cost of debt, but still, It is very expensive to roll up the credit card.

 

The snowball from the credit card

The snowball from the credit card

Under the old credit card rules, administrators allowed only a small part of the debt to be paid. The rest could enter the revolving credit and be rolled over indefinitely. In the expectation of finding a future situation that would allow paying off life, whoever resorted to this option ended up getting involved in a snowball. After all, the interest rate exceeds 500% per year – on a revolving basis, which further complicates the situation.

 

The new rules for credit card revolving

credit card revolving

By the new rules, the consumer s you can pay the minimum of the invoice only once. If in 30 days he does not pay off the total debt, then he owes opt for installment payment. In installments, interest rates are smoother than those of the revolving one, and are rotating between 1% per month and 10% per month, depending on the bank. Even so, you need to pay close attention, after all, in addition to the interest, there are other charges, which can burden the life by 300% per year or more, depending on the institution. How is the possibility to pay in at 24 installments, long-term installments continue to be a trap.

 

A practical option for shopping

A practical option for shopping

Who sees the credit card as a form of payment can enjoy what there is the best in this resource. With him, carrying little money, It is possible to make payments in a very practical way, including when traveling. It is also easy to have complete control over spending, since the invoice records when and where an expense was made and how much it represented. Besides, when is it not charging interest or when interest is reasonable, too to make installment purchases in a very quiet way, even through the Internet. However, whoever needs to use the money of a financial institution, should look for alternatives outside the credit card.

 

The alternatives for paying the debts of the credit card

The alternatives for paying the debts of the credit card

If you are you with a debt on the card, the first attitude should be to avoid using it to the maximum extent, even if your limit still allows it. The best option ever is, if possible, pay the full amount in arrears as soon as possible. But, if life is beyond your payment possibilities, it is also worth seeking a “renegotiation with the administrator,” trying to get a less expensive exit. Interest Create your own infographics If the only alternative is installment payments, try to find out about the interest charged.

To them Must be added the other fees and the tax, making up the Total Effective Cost (CET) of the debt. Does CET represent how much are you really pay for what you should? Then, compare the CET with the fees charged for loans at the bank itself that your card is with. linked, or out of it. Probably you will find lines of credit with lower interest rates than those charged by the card.

Personal credit, for example, is often an option with lower interest rates. Or, even try to research the payroll, with Direct discount on the payroll, and more competitive interest rates. There are also credit unions, which charge a little more than 2% per month for loans. Could it be more interesting for you take on such financing to pay off the credit card. Now that you know how to deal with the end of the credit card revolving, subscribe to our newsletter to receive new tips on financial organization. and more competitive interest rates.

There are also credit unions, which charge a little more than 2% per month for loans. Could it be more interesting for you take on such financing to pay off the credit card. Now that you know how to deal with the end of the credit card revolving, subscribe to our newsletter to receive new tips on financial organization. and more competitive interest rates. There are also credit unions, which charge a little more than 2% per month for loans. Could it be more interesting for you take on such financing to pay off the credit card. Now that you know how to deal with the end of the credit card revolving, subscribe to our newsletter to receive new tips on financial organization. 

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