Credit Card is a widely used bank product in our country. If credit cards are not used correctly, it can cause serious economic problems. One of the effects that make card users difficult is to pay the minimum amount of card debt and make it a habit and repeat it continuously. So what’s the minimum payment amount on this credit card? What happens if we pay the minimum amount? What are the drawbacks?
What is the Credit Card Minimum Payment Amount?
The Minimum Payment Amount is the amount that shows the lowest amount you need to pay to your card when it comes. You have the option to pay on the minimum amount instead of paying the full amount of your card debt, but it will be transferred to the other month by adding interest on the other amount you have not paid. It is also possible to apply shopping interest for each shopping you make after paying the minimum amount. If you make a habit of paying the minimum amount, this situation will become inextricable, and even if you do not realize, your card debt will increase day by day and grow like avalanche. This is with the general definition of the minimum payment amount on your credit card.
What is the Minimum Payment Amount?
Credit Card Minimum Payment Amount is an amount that varies according to the limit of your card. The higher your limit, the higher the amount. However, when calculating and determining the amount you will pay, an account is issued by taking into account the total debt of your card that month.
- Limits up to TL 15,000 30%
- Limits between 15.000 TL and 20.000 TL 35%
- Over 20.000 TL limits 40%
will be calculated as. This account is based on total debt.
For example, if you make a purchase of 1,000 TL on your credit card with a limit of TL 1,000 , the minimum payment amount will be 300 TL on the due date. If you spend 500 TL on a credit card with a limit of 1,000 TL , the minimum payment amount will be 150 TL.
What happens if we do not pay the minimum amount?
If you do not pay the minimum amount of 150 TL or 300 TL, as shown in the sample payment plan , your card debt will be delayed and your registry will be affected negatively. Even if you don’t have the power to pay your card debt, you should pay the minimum amount . If you do not pay your debt for 90 days, including the minimum amount, legal proceedings will be initiated against you. Before this happens, you can check the options for configuring the card debt .
What are the Losses of the Minimum Amount Payment?
When you pay the minimum amount, you are constantly paying interest. The interest determined by the RoseBank is applied to your debts that are lagging behind. At the same time, when you make the minimum payment, the shopping interest is applied to the other purchases. Although it does not appear to be a problem in terms of your record, your card debt will exponentially come from behind and may pose a risk in future periods.