Credit card revolving gained new rules in 2017. Now, banks are required to offer compulsory installment payments if customers use the credit card for more than 30 days. The revolving is triggered when the consumer You no longer pay your entire bill and pay some 15% to your total spend in that month.
The change of rules occurs in the wake of the popularity of the credit card, one of the most widely used means of payment today. With the increase in the amount spent on these solutions, the size of invoices has also grown. Financial Control Application SurveyCaptain Nemom shows that Brazilians today pay 41% of credit card spending, the highest amount in at least two years. The risk of concentrating card spending is delaying the bill and paying high interest for it. This is one of the reasons why compulsory installment payment was created.
Want to know how invoicing installment works? Here’s what changes and how to avoid debt.
Pay attention to new rules for parceling card bill
The new credit card regulation has been in force since April. And what does that mean? Basically, the financial institutions and card operators should offer the consumer the installation of the outstanding balance.
If the customer enters the revolving credit, the bank or operator must offer the debt installment after 30 days. After this period, the customer can also pay the debt in full. The idea is to reduce delinquency and high debt with credit cards.
Is it good to pay the minimum amount of the credit card bill?
When you pay the minimum amount or some amount below the total amount due, that difference in amounts will be automatically charged in the following period. The customer will not be in default, and will continue to enjoy the services of the card, but will have a larger debt to pay off with the financial entity. Another risk is that the customer may have multiple installments in parallel, which may lead to uncontrolled budgets.
What precautions should you take before you install the bill?
Splitting the credit card bill is a tempting option for many people. But still, some care must be taken before taking this action.
Remember the interest you incur
When opening the rotary, remember that paying the original debt will incur additional interest.
The difference is that, from now on, the incidence of high interest rates on the revolving credit card of 10.9% per month is limited to one month. Then, the automatic installation, with lower but still high interest, will occur at around 8% per month.
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For this reason, you need to check with your bank what interest rate will be on the amount to make sure that installment payments will not become a future problem. It is essential to plan properly.
Don’t forget to save money later
If the amount that will not be paid for the installment of an invoice will be for the next bill, it is worth organizing to spend less on creating new card purchases. Credit
Evaluate how many launches (and their values) are already for the next month to see if you can actually afford the amount you will have for the period.
When is it worth to split a credit card bill?
The solution should be well evaluated, especially when the budget is in red .
The efore making the decision, the most suitable for making a detailed financial planning. Write down all your income and monthly expenses. It will be simpler to establish what percentage of your salary will be devoted to the different areas of your life.
Within that division, set a percentage to pay for the card. If, when rearranging your financial life, you realize that you cannot afford the value of your invoice, then the time has come to think of alternatives to the full payment of each invoice.
Parceling an invoice is a seemingly simple attitude, but one that requires planning and attention. The main step to be taken is to organize your financial life so that the added value does not become a snowball capable of endangering your monthly budget.