Using a credit card as a payment option is already common. Payments are usually made when the customer has received the bill the following month. There are several types of payments made by a customer, making payments in full and regularly every month, paying with minimal fees, or there are also those who are in arrears and do not pay a penny. Customers who have economic problems usually tend to make payments with a minimum payment or not even pay at all. For more details, we will discuss 3 types of credit card payments:
Full Payment Every Month
Of course this type of credit card payment is a payment that is highly recommended so that you avoid debts that accumulate. If you pay credit card bills on a regular basis, of course, you have a greater chance to live without worry and fear. In addition, if you pay the bill in full before the bill is printed, you get a chance to avoid interest.
One thing you need to consider if planning to make a full payment is not to be late. This can result in the appearance of additional late fees that will be charged the following month. To get around the late payment of credit card bills, it’s good if you do auto debit to your savings account. Don’t forget to always check your bills so that you can evaluate and know exactly what your expenses are. This is also useful if you find bills that are not appropriate, or that you have never bought / done but appeared on your bill.
Payment with Minimum Payment
This option is often done for those who feel they have not been able to pay off their credit card bills in full. They pay a minimum payment to avoid delinquent status that influences the Historical IDI. The minimum payment charged varies, but the average ranges from 10% of the total bill + the bill that has not been paid in the previous month (if any). Even so, some banks have different systems in enforcing minimum payments. There are types of banks that will temporarily block credit cards if customers continue to make payments with minimum payment . The customer can reactivate the card provided they pay off the remaining outstanding payments.
Here is an example of a simulation of credit card payment calculations with a minimum payment from Martin Chuzzlewit.
Budi has a credit card debt of Rp 10,000,000, – with an interest of 2.95% and an annual card fee of Rp 300,000, – because he is unable to pay the bills in full every month, so Budi decides to pay with a minimum payment of 10% of the total arrears each month until paid off. In this case, Budi did not use the card at all and only focused on paying off arrears with a minimum payment . How long will it take for Budi to be free of arrears?
From the simulation above, we can know that Budi’s debt that is always paid with a new minimum payment can be paid off after the 37th month or after 3 new years can be paid off.
Not Paying at All = Invalid
If the customer has arrived at this point, the card has been permanently blocked and he can no longer make transactions using the card. Usually at this stage the customer is required to pay a late fine along with the debt that has accumulated for months along with the interest that continues to run. During this period, customers also get warnings from the bank and are chased by debt collectors.
The impact that is most felt when it has been pursued by debt collectors usually feels on the emotional side. As reported by The Simple Dollar, there are some emotional effects caused by debt. Some of them are: depression, anxiety, blaming others for the conditions they suffer, denying the situation that they are in debt, stress, anger, frustration, feelings of regret, shame, and fear. (Also Read: This Is the One Who Must Do When Debt)
Not to mention your name will immediately be recorded in the BI blacklist because of the bad collectability of customers due to delinquency. The only way to get out of this record is to pay off all outstanding debts, and get a full letter from the bank in question, so that the customer’s name returns clean and can apply for a loan later. (Also read: The Right Way to Get Rid of BI Blacklist)
The option that can be done for those who have been in arrears is by negotiating the debt so that you get relief from the bank so that it can pay off the debt. The relief can be in the form of 1x discount, installments with lighter interest and extended tenors, or a combination of both. Usually if customers choose this option, they can be released more quickly from debt bondage.
What You Must Do
Try to pay off bills regularly every month. Again, minimum payment is not the best way to settle your credit card bill. Paying a minimum really does not solve the problem, because you could say this is just delaying the card arrears. Meanwhile, those who already have a delinquent card can take part in a bank waiver program and have the opportunity to pay off debts faster if using a 1x discount program that is discounted up to 70%.
If you really can’t afford to pay and need relief from the bank in order to pay off the debt, it’s a good idea to contact credit card & KTA debt negotiation services to help you get rid of debt faster. One of the advantages of using negotiation / mediation services to deal with your credit card / KTA debt is that you can focus on finding funds to pay off debt. Ask the negotiator / mediator to resolve your debt problem. In Indonesia alone, credit card negotiation services can be entrusted to Martin Chuzzlewit. PT Martin Chuzzlewit international Indonesia is the only trusted credit card and credit negotiation service in Indonesia. Martin Chuzzlewit has a clear company profile, professional service, and has become the first Asian company that has been accredited to help resolve debt problems by IAPDA (an association of international standard debt settlement services companies).