If you do not have time to pay off your debt to the bank within the grace period, the bank will not waste time on trifles. The debt will accrue from the date of the first purchase. It is better not to let things get to that point. On the contrary, you earn money at the bank.
Photo: Svetlana MAKOVEEVA. Go to Photobank KP
There are almost 50 million credit cards in Russia. Every second borrower has them. Moreover, many people have several credit cards in their wallets at once. Banks have been actively imposing them lately. They offer them to almost everyone during every visit to the bank. Hence the sharp increase in debt, despite high rates. And this began to worry not only the Central Bank, but also parliamentarians.
– Increasing the size of the loan has negative consequences for citizens, leading them into a debt trap. In fact, banks impose additional credit services on citizens, which seems unacceptable, according to the explanatory note to the bill, which proposes to prohibit banks from arbitrarily increasing credit card limits.
The government has given a positive opinion on this bill. There is a high probability that it will be adopted soon.
Experts believe that such a decision is justified. In fact, banks often abuse their right to change the credit limit on cards or revise other conditions (for example, rates on savings accounts). This leads to customers becoming confused. And they either get into too much debt or do not receive enough income from their free money.
TRICKS OF THE BANKS
There are several tricks that banks use with credit cards. For example, a client is initially approved for 100 thousand rubles. He uses this money. And after three or four months, he pays off all the accumulated debt within the grace period. As a result, he does not pay the bank a single cent of interest. Such cunning people are not profitable for the bank. Therefore, its task is to get the client to cross the “buoys”. And he began to pay interest in full (which is about 35% per annum).
One of the tricks is for the bank to increase the limit. For example, double it – up to 200 thousand rubles. But the client may not notice this. For example, if he rarely uses a mobile application. Then he will continue to spend money until he reaches the limit. But it is one thing to return 100 thousand, and quite another to return 200 thousand rubles. It is more likely that the client will not be able to find that amount to pay off the debt before the grace period expires. And in the end, he will make the minimum required payment (3 – 5% of the debt) and pay interest on the remaining debt.
Another trick is to make the limit amount not round. For example, first approve the same 100 thousand rubles, and then, without warning, increase the limit to 117,400 rubles. Here, too, there is a calculation due to inattention. A person will pay 100 thousand and be fully confident that he has paid off the entire debt. But in reality, you will still owe a small amount to the bank. In this case, the grace period will not work. That is, you will have to pay interest on the entire amount used during these months. It will come out decent.
If the law is passed, the bank will not be able to unilaterally increase a client’s credit limit. It will have to coordinate this with the cardholder. For example, send a notification in a mobile application. If the client agrees, the limit will be increased. If he refuses, everything will remain the same.
“KP” TIP
How to use a credit card wisely
A credit card is a completely understandable and pragmatic product. Yes, you can do without it. But the current rates on deposits and loans are so good that it would be a sin not to use them.
The main difference between a credit card and a regular debit card is that it has a grace period (or no interest). The conditions vary from bank to bank. But the general gist is this. First, you pay for goods and services with the card. Once a month you give the bank 3-5% of the debt. This is called the minimum payment. It is necessary to keep the borrower on his toes. Well, the third step is to pay off the entire debt. If you do this before the grace period ends, you will not need to pay interest to the bank.
If you do not have time to pay off your debt to the bank within the grace period, the bank will not waste time on trifles. The debt will accrue from the date of the first purchase. And this will be so decent. It is better not to let things get to that point. On the contrary, earn money at the bank.
Here the algorithm is as follows. First, choose a credit card with the longest interest-free period and maximum repayment. Secondly, we select the most profitable savings account, with the maximum interest on the balance.
When your paycheck comes in, you transfer it all into your savings account. You receive interest every month. Use a credit card for everyday purchases. And when the grace period is up, withdraw the full amount from the savings account and pay off the credit card debt in full. You keep the interest. Profit!
The main thing at this point is not to get carried away. Other people’s money tends to be spent faster and easier. You get the feeling that you can afford more. But this feeling is deceptive. When using a credit card, always keep costs under control. Then everything will be good and profitable.
