Having two or three credit cards in hand is a standard feature for many young people, and there are new mobile phones, shoes,min pay clothes, bags, etc. every year. In order to catch up with the trend, young people may buy it if their income is not enough. Spend in advance.
However, the vast majority of young people cannot control their own hands. Although they use their credit card limit to spend, their daily consumption still does not decrease, so the hole becomes bigger and bigger. Once they lose their job or encounter special events, their credit card It will be overdue.
Yes, sometimes we are tight on money, so we can use credit cards to make cash flow and relieve short-term stress.
However, once a credit card is overdue, you will have to bear higher interest rates, and your credit score will also be affected.ofw quick cash loan online From now on, the credit card will not help you improve your credit score, but will make your credit score more and more expensive.
So, after the credit card is overdue, will the repayment be deducted from the interest or the principal?
In fact, if our credit card is overdue for less than 3 months, the bank will repay it in the order of interest or fees first, and then the principal.debt consolidation It is best to pay it off at once, so there will be no subsequent fees.
After a credit card is overdue for 3 months, the original repayment is based on the order of principal, interest or various fees. However, for many cardholders who are overdue for more than 3 months, most banks still repay the interest first. The principal remains unchanged;
At this time, we can contact the customer service of the bank and ask us to repay in the order of principal first and then interest. Otherwise, following the order of interest first and then principal will cause us to pay more and more.
If we feel that our credit card is overdue, we first need to control our own consumption desires. Many young people just can't control their own hands, causing the hole to get bigger and bigger. In the end, the profits are compounded and they fall into a black hole;
In fact, overdue debt can be eradicated at the beginning. As long as we control our own hands first, stop spending too much, and use our two or three months' salary, we can still pay it off.
If we lose our job or have other changes, we can first find a way to collect money to repay as much as possible. We can transfer it to relatives and friends, and then pay off the bank debt in one go to make our credit score better.
In addition, we need to proactively contact the bank to explain the overdue situation and strive for the opportunity of interest-free installment. However, most banks will not approve it. Cardholders should be down-to-earth and fill the holes they have dug themselves.
By:Brianna