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Are you expecting high expenses this month? There is a product you must know - Walla! Of money

2021-10-17T04:46:02.196Z


Choosing a monthly credit card charge is a popular product in the US and allows you to determine how much to pay by credit card and transfer the balance to next month.


  • Of money

Are you expecting high expenses this month?

There is a product that you must know

Choosing a monthly credit card charge is a popular product in the US and allows you to determine how much to pay by credit card and transfer the balance to next month.

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  • max

Walla!

In collaboration with max

Monday, 30 August 2021, 15:23 Updated: Tuesday, 05 October 2021, 10:06

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High expenses?

You do not have to go into the red (Photo: ShutterStock)

Did you know that choosing a monthly credit card charge is one of the most significant financial products in the United States today? According to the Federal Reserve, the central bank of America, in each of the quarters of 2020 and 2021 (so far, but the trend is clear) American credit card holders have chosen to "roll" close to a trillion dollars for next month, compared to a little over three Trillion paid in the corresponding periods in credit cards.



Or in simple words: on average, every American who charges his credit card in a given month, for example, about $ 3,000, uses the option of choosing a monthly credit card charge to transfer almost $ 1,000 more to the next month and thus deal with higher expenses than expected in a given month. Of course, this does not mean that * every * American uses this tool, which is suitable for certain situations and certain people, but it is easy to see its popularity, which also exists in other places in the world such as Britain and Turkey.



What exactly is the product - choosing the monthly charge on the credit card?

When should you use it and for whom is it suitable?

Here is a brief and exhaustive explanation on the subject, about a product that can easily change your entire financial situation.

More on the subject

4 tips to help you manage wisely in months of high expenses

To the full article

It is possible to roll part of the amount of credit forward (Photo: ShutterStock)

Get to know the product - choose a monthly charge on the credit card

Choosing a monthly credit card charge is actually a solution for those who are expecting a large expense and want to manage the upcoming expenses.



It is important to understand that a minus is actually a type of loan, on particularly bad terms. Although we are still within our credit line (deviating from it is already another and much bigger problem), we have to repay the minus with current and high interest payments and often, without full transparency regarding the level of interest we are expected to pay. In fact, only at the time of charging the interest rate of the minus, which is done once a quarter, we may suddenly find out how high our interest rate on the minus.



According to data from the Bank of Israel, the average interest rate you will pay on the minus is 8% and for exceeding the credit limit you will be expected to pay up to 13% interest.



The possible and smart solution in such a situation, where the expenses exceed the income in a certain period, is to choose the monthly charge on the credit card. For example, if we need to spend NIS 5,000 on our credit card and want to be charged that month for only NIS 3,000, the remaining NIS 2,000 can be transferred to the next month plus interest. The credit card company Max, which offers the service of a fixed monthly charge, has a benefit under which no interest is paid at all for the first three months.



Even at the end of the benefit period, the interest you will pay after 3 months will usually be cheaper than the one you will pay on the minus in the bank.

In addition, you will know in advance how much interest you will pay and you can update the amount of the monthly billing, stop the service at any time simply on the website or app (while paying the full cumulative basket on the next billing day) or repay the cumulative basket once.

Another important advantage is that setting a regular monthly charge on the credit card will allow you to maintain your credit rating, through proper management of expenses.



It is not by chance that the product is so successful in the United States, where the credit rating is very important in obtaining credit products at affordable interest rates.

It is also very significant in Israel and it is worth paying attention to it and at the same time, allow yourself the same financial flexibility.

Suitable for those who keep track of their income and expenses (Photo: ShutterStock)

So who is the product suitable for and when should it be used?

Regular monthly billing is a good financial product for those who actively manage their financial affairs - log into the bank account, know how to plan ahead and know the credit card bills, their future salaries and the balance between their expenses and income. This is a credit solution that is recommended to use in the short term, when there are unexpected or higher expenses than usual.



At max, new customers who join the regular monthly billing service are offered the first 3 months without interest, so that the amount you pass on will not accrue interest in those months. If you know how to use the product correctly and balance your billing at the right moment, you can enjoy controlling expenses, without interest and without surprises, for the benefit period.



Choosing the monthly charge on the credit card will give you full control over the point expenses, as opposed to a minus in the bank or a deviation from the credit limit.

If you tend to keep track of your money and understand how to manage it properly, this is a cost-effective solution for you.

Just make sure that you use the product carefully and responsibly so that you can proceed wisely until the exceptional expenses are balanced.



For more details on choosing the credit card billing amount >>

Legal notes:

The benefit of a fixed billing product is only available to new entrants to the service Customers who meet the eligibility conditions will be able to enjoy the benefit 0% interest benefit will also apply to transactions made abroad | The balance of the amount, which will not be charged, will be added to the cumulative basket of transactions that will bear 0% interest for the benefit period, and thereafter - according to the interest set in the card terms | From the credit limit, whichever is higher | In non-multi-type cards, a minimum monthly repayment of NIS 500 or 1% of the credit limit, whichever is higher, can be set. Cumulative | If the card exceeds the credit limit allotted to it, the monthly charge will be in excess of the limit | Details about existing loans on your card can be found on the monthly details pages | Failure to meet the loan repayment may result in arrears interest charges and execution proceedings |Max | Subject to the terms of joining and the approval of the company.

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Source: walla

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