When it comes to organizing finances, the card can become a headache for months to come. But in case this has happened to you, this is not the time to despair! It is very common for banks to offer some alternatives to those who cannot pay the entire bill when due.

In order not to snowball, it is important to understand the differences, advantages and disadvantages of paying the minimum or instalment credit card bill. With that in mind, we decided to prepare a text with everything you need to know to ensure that your money doesn’t go flying around! 💸

When to think about negotiating the card bill?

Before we explain which is the best alternative between paying the minimum amount or paying in instalments on the credit card bill, it is important to have no doubts that any of these options should only be used as a last resort.

Can’t you pay the bill in full? Will there be money left over for the electricity bill? So better find out what to do! Have you ever stopped to think that a credit card is nothing more than a type of bank loan ? Think with us: your limit is the amount you can borrow every month, and if you pay back everything you’ve spent until maturity, you don’t pay interest.

The big advantage is that you are not charged at all for it. In other words, you can wait until you receive your next salary, but you can already count on the purchase you needed to make — like the story about the refrigerator we talked about up there. A house cannot wait more than a fortnight without having a place to store food, can it? 🧀

In situations like this, using the card is recommended, even if it involves choosing one of these payment options. Still, the best alternative is to organize your financial life and always have a reservation for situations like this, avoiding having to negotiate your card bill.

Pay the minimum bill: how does it work?

Paying the minimum bill means paying just enough not to be late with the bank. Whenever an invoice is closed, the institution makes the calculations and sets the minimum amount for that debt that needs to be paid when due. When choosing this option, the rest of the amount goes straight to the next invoice, but with a problem: interest .

In this situation, the highest interest rates on the market – called compound interest – come into play, which can reach up to 300% per year. Depending on which bank your card is linked to, paying only the minimum can mean spending a lot more money just to put off payment for another 30 days. And if you can’t pay off the next one, the snowball will grow even more ! 😱

This alternative should only be chosen as a last resort, as it prevents your name from getting dirty or the card from being blocked. Plus, you save time, which can be important when you know you’ll have a little more money coming in next month.

And how do you pay the card bill in instalments?

Another option is to pay the credit card bill in instalments, a choice that takes the compound interest off the account. The negotiation also offers a longer-term for the amount to be paid, avoiding only a delay of 30 days, for example. This can give even greater relief to your bills, and you don’t need to pack up everything you need to pay on the next bill.

Choosing this path, if we are going to analyze it, is always better than paying the minimum. This gives you more time to organize your bills at home and not get in the way of your day-to-day shopping. Gradually, your debt is paid off, the card limit is released, and things get back to normal. It’s a scare, but simpler to control. But beware: the interest on installment payments are lower, but they still exist!

Is credit card always the best option?

pay the minimum or installment credit card bill

You already know which is the best option between paying the minimum or paying in instalments on your credit card bill, right? But it’s even better not to have to choose between these alternatives. So you don’t have to go through this headache, the store’s own instalment plan is an appropriate way to buy what you need without compromising your pocket.

The advantages of going this way are many and start with the limits that credit cards set. If your card’s limit is 1,000 reais, how can you pay for a product that costs twice as much? The instalment plan does not have these impediments, which makes it much easier. Another benefit is the possibility to negotiate directly with the store.

You don’t need to call the bank and wait for hours to be seen: you speak directly to the store’s attendants. Even if you happen to need to delay an instalment, for example, negotiation is simpler, more direct and human. Then you avoid running the risk of getting complicated when paying your bill and ending up getting stuck with interest and new deadlines. 😉

When you have to decide between paying the minimum or paying in instalments on your credit card bill, don’t be on the fence: the second option is always the best. You will spend less money and still not damage your reputation with the bank. But, even better is not to let that happen and make sure your purchases are organized.

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