Credit Card Interest (Revolving)
The snowball: Calculate the increase of your debt month by month.
The danger of the Minimum Payment
The revolving credit on a credit card is the most expensive line of credit in Brazil (and in the world). When you can't pay the full bill and pay only the \"minimum,\" the bank takes the rest of the money you didn't pay and applies astronomical compound interest on it.
The New Rules of the Central Bank
Until 2023, credit card interest rates could reach more than 400% per year, creating unpayable debts that destroyed the financial lives of families. In January 2024, a new law came into effect:The total interest on the credit card debt cannot exceed 100% of the original debt amount.
This means that if you delayed a bill of R$ 1,000, the maximum the bank can charge you in accumulated interest and fines is R$ 1,000. Your final debt will be capped at R$ 2,000, regardless of how many years go by. Our calculator simulates the natural growth of interest so you can see how quickly this debt doubles in size!