Do you know what credit card arrears are?
Who has a credit card knows how convenient it is to make purchases with him. However, it is necessary to consciously use it and understand its rates and interest rates, such as credit card arrears. You have to be careful when it comes to spending. Make good financial planning to get the bills up to date and not get into debt.
When we do not pay the credit card invoice on the established date , the late payment penalty is charged for each day of delay in relation to your non-payment. But what does credit card arrears mean?
What is a credit card arrears?
Mora means delay and is also known as fine moratorium. According to the consumer protection code , this type of fine provides for a percentage to be withheld by the bank or credit card operator for a backlog.
How is it charged?
The late fine does not have a punitive character. It aims to encourage the customer to pay the stipulated term invoice.
When the payment of the card’s invoice is not made on the due date, the bank has the right to charge default interest. Example, if your invoice has expiration on the 15th, and you make the payment on the 16th, the fine will already be charged.
According to article 52 of the Consumer Protection Code , the delayed fine can never exceed 1% of the total value. Such interest may be collected even if it is not specified in the membership contract. However, in this case, the collection limit is only 0.5%.
How to calculate default interest
According to the IRS website, to calculate the amount of default interest, just follow the following steps. Add the Selic rate from the month following the month of the invoice to the month before the payment. Then add to this sum 1% referring to the month of payment.
How not to delay the payment of the invoice?
In general, we can not pay the credit card bill when the amount charged is higher than our monthly income. So be very careful not to make the habit of using the card limit, only in times of emergencies. See tips on how to organize your finances with your credit card.
By using an amount above what we have to pay, we have trouble keeping the payment up to date. Then we can make debts or even consider a personal loan .