{"id":17342,"date":"2022-10-29T23:27:17","date_gmt":"2022-10-30T06:27:17","guid":{"rendered":"https:\/\/www.despertarmagia.com\/the-risks-of-the-minimum-credit-card-payment\/"},"modified":"2022-10-29T23:27:17","modified_gmt":"2022-10-30T06:27:17","slug":"the-risks-of-the-minimum-credit-card-payment","status":"publish","type":"post","link":"https:\/\/www.despertarmagia.com\/the-risks-of-the-minimum-credit-card-payment\/","title":{"rendered":"The risks of the minimum credit card payment"},"content":{"rendered":"
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The so-called minimum payment of the credit card<\/strong> is a very common practice among Chileans, considering also the level of indebtedness of our country<\/strong>that grew up<\/strong><\/span> in pandemic at historic levels<\/strong><\/span>.<\/p>\n

Nevertheless, making only the minimum credit card payment is the least recommended action by experts<\/strong><\/span>then bring impact<\/strong>often unknown to users, ranging from the increase in debt, to the point of strongly affecting our credit evaluation.<\/span><\/strong><\/p>\n

Related news<\/h5>\n

\u201cUse your Credit cards<\/strong>, exchange your miles, points, dollars for what is most useful to you at the moment, gain liquidity and flexibility<\/strong><\/span>but do it in a conscious and informed way.<\/p>\n

Remember, the credit card is a financial product<\/strong> which offers the possibility of buying with borrowed money<\/strong><\/span>which we have to return between the end of the billing period (cut-off period) of the credit card and the payment deadline for that period, so as not to pay interest\u201d, explains Nicol\u00e1s Chac\u00f3n, CEO of Neat Payments<\/strong>platform that helps to order your payments.<\/p>\n

The expert points out that it is very important to consider that that money must be returned in full, otherwise constant debts will be acquired with the bank.<\/strong><\/span><\/p>\n

Nicolas Chac\u00f3n explains that the credit card it’s a loan<\/strong>is a credit that has two major components: 1) Capital <\/strong>two) Interest<\/strong>.<\/p>\n

The quota delivered when opening this product is the capital<\/strong><\/span>what they charge for not paying on time, the interest<\/strong><\/span>.<\/p>\n

The person pays the total of the capital or quota used during a billing period, interest is not paid.\n<\/p>\n

When paying only the minimum of the credit card The total of the capital or quota used in the period is not being paid, but only a minimum part.<\/strong><\/span>\n<\/p>\n

\u201cIt is very damaging, because we never got out of debt and worse still this becomes paying only interest<\/strong><\/span>is a very bad practice and we finally become a bad payer<\/strong><\/span>and so the most important point when evaluating our credit situation we are harming it<\/strong><\/span>.\n<\/p>\n

It’s better to tighten your belt pay as much as possible before making a minimum payment<\/strong>.\n<\/p>\n

The unknown risk is that you don’t really get out of debt and this has collateral damage on our monthly budget<\/strong><\/span>at some point we will have to pay and limit spending on other things, or perhaps even have to take on another debt to leave this balance paid, \u00abhe adds.\n<\/p>\n

A big problem that snowballs and the user you will always continue to pay more interest than principal<\/strong>and the debt will continue to increase.\n<\/p>\n

\u201cFor this reason, it is best to spend what we are sure we can return on time. In the case of using installments, verify that they are without interest and be aware of the risk that late payments imply.<\/span>\n<\/p>\n

WHAT HAPPENS IF I PAY LESS THAN THE MINIMUM?<\/h2>\n

The bank will charge you even more interest and may also be reported to the delinquent registry.\n<\/p>\n

Then you are classified as debtor with bad payment behavior<\/strong> and you can finally choose worse conditions in loans and other products.<\/strong>\n<\/p>\n

For more information on this and other topics related to personal finance, you can enter here<\/strong>\n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The so-called minimum payment of the credit card is a very common practice among Chileans, considering also the level of indebtedness of our countrythat grew up in pandemic at historic levels. Nevertheless, making only the minimum credit card payment is the least recommended action by expertsthen bring impactoften unknown to users, ranging from the increase in debt, to the point of strongly affecting our credit evaluation. Related news \u201cUse your Credit cards, exchange your miles, points, dollars for what is most useful to you at the moment, gain liquidity and flexibilitybut do it in a conscious and informed way. Remember,\u2026<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":["post-17342","post","type-post","status-publish","format-standard","hentry","category-lifestyle"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":4}},"_links":{"self":[{"href":"https:\/\/www.despertarmagia.com\/wp-json\/wp\/v2\/posts\/17342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.despertarmagia.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.despertarmagia.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.despertarmagia.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.despertarmagia.com\/wp-json\/wp\/v2\/comments?post=17342"}],"version-history":[{"count":0,"href":"https:\/\/www.despertarmagia.com\/wp-json\/wp\/v2\/posts\/17342\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.despertarmagia.com\/wp-json\/wp\/v2\/media?parent=17342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.despertarmagia.com\/wp-json\/wp\/v2\/categories?post=17342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.despertarmagia.com\/wp-json\/wp\/v2\/tags?post=17342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}