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Credit card bill – How the minimum amount is the misleading amount?




Your Credit card gives you two movie tickets free in a month, online shopping discount, 45 days credit limit, the convenience of not loading cash in your pocket, but along with all these if you pay only the minimum amount in your bill, unknowingly  you are a paying the highest return of 40 – 42% per annum.

Most of us are a doing mistake while using a credit card is that we are not checking our bills on a regular basis, as in notification of SMS of the bill pending they also mentioned the minimum amount along with the total amount, and as the minimum amount is very less compared to the total amount we prefer to pay that only, and we keep on assuming that...what great credit I am receiving with my credit card bill, I have spent Rs 10,000 but at present, I have to pay only Rs 500..wow... Next month I will spend even more!! Therefore I am saying please check your bills regularly, late payment fee, finance charges or interest are those words who reflecting wealth generation source for credit card companies., that is where you are getting two free movie tickets from!!!

Actually, the minimum amount is useless column has been added to create wealth for companies, and by asking they said its minimum amount you need to pay to continue using the card next month. I have noticed that if you don’t pay anything on the due date, you will get a call or SMS from the bank very next day about your payment is due and all... but if you are continuing the minimum amount payer you will get more call about new offers and discounts...It’s a strategy of making you spend more so they can charge more interest on it.

Always remember, whatever you have spent in a month or during your bill cycle, don’t leave it unpaid in your next bill, if you have made that, your interest will start calculating based on interest charges which are huge up to 40% per annum. 

Pay your total amount rather than the minimum amount as it has been kept there to mislead you.

The credit card has the biggest loan interest among all the loans.

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