Swipe here and there, this transaction using a credit card is very practical and profitable. But you need to be vigilant, because it can actually make ‘addictive’ in its use. Finally, credit card bills swell because of not being aware of more shopping.
Aside from excessive usage, there are several other factors that can cause your ‘magic card’ bill to increase so that it can become your financial burden every month.
1. Exceeds the maximum limit
If the credit card application is approved, surely you will be notified of the maximum credit card limit that you get. Usually adjusted to your salary. If the track record for paying bills is smooth, then the nominal limit can be increased, even to the extent that it exceeds your income every month.
Of course, a large credit card limit is profitable. But it can also be a boomerang for you. Because this will make you err, even can be broken. So the peg is bigger than the pole.
Pay bigger bills. That’s just the principal debt, not yet added interest, so the amount of installments you have to pay can be higher. If the portion of debt installments is more than 30% of monthly income, then the possibility of default can be paid.
2. Late paying bills
Swell credit card bills can also be caused by delays in paying debts. If the payment is past due, the credit card provider bank will charge late fees that will be included in your bill. That way, more and more bills. Late fees are usually calculated from the total monthly bills.
3. Too often withdraw cash
On a credit card, there is usually a maximum cash withdrawal. Usually limited between 40-60% of the total credit card limit. The maximum amount of cash withdrawal depends on the type of credit card chosen.
The problem, withdrawing cash using a credit card is subject to administrative and interest costs. The interest charged for cash withdrawals is much higher than the interest for shopping transactions. The difference can reach 0.5% to 2%, depending on the policy of the credit card issuing bank.
While credit card cash withdrawal fees are usually charged at 4%, some even reach 50,000. The fee is charged directly at the time of withdrawal. So, the greater the value of cash withdrawals, the greater the bills due to costs and interest.
Swollen Bill Solutions, Use KTA Loans
Resolving an enlarged credit card bill, in addition to using personal savings or selling valuable assets, you can look for alternative ways such as applying for Unsecured Loans (KTA).
KTA is a loan facility without the need to use collateral or collateral. KTA loan ceiling is usually around $ 3 million to $ 300 million. Some even offer $ 500 million.
Big is not it? Very enough to pay off your credit card bills. It’s just to keep in mind, that you use a way to dig a manhole cover in solving debt problems. So make sure that you can pay new loans through KTA.
What you need to know from KTA is:
1. Submission is relatively faster and easier. On online platforms, like Lite Lenders you can too. As long as the requirements are complete, KTA funds can be disbursed in just one hour
2. Applying for a KTA, there are those who do not impose the conditions for having a credit card. So anyone has the opportunity to access this loan
3. Borrowing KTA must be prepared with the consequences of relatively high interest. Some even charge up to 2.5% per month
4. There is a penalty fee if paying off the KTA before maturity.
Try to calculate, if you borrow KTA $ 50 million, a 3-year tenor (36 months), an interest rate of 2.5% per month. Therefore, the principal to be paid is $ 1.39 million per month. Multiplied by 2.5% a month, the installment is $ 1.42 million, which must be paid every month to the bank.
Choose the Best KTA with Light Interest
Because there are risks lurking about settling old debt with new debt, make sure you choose the right KTA. If you are still confused, you can compare several KTA products from several banks through the Lite Lenders website.
Choose the best KTA that offers low interest rates with a long tenor, so that installments become lighter. Submission can also be made directly through the same site. Good luck.