The minimum payment on a credit card is the smallest amount that a credit card holder must pay each month in order to keep their account in good standing. Usually it is a percentage of the outstanding balance on the card, roughly between 1% and 3%, or a fixed dollar amount also known as a minimum payment du, whichever is greater.
While making only the minimum payment may help you, the cardholder avoid late fees and penalties. It will also result in increased interest charges on the remaining balance, which can add up quickly and make it much more expensive to pay off the debt in the long run. You could add years to your payments and thousands of extra dollars, depending on your balance and time frame.
Do your best to pay more than the minimum amount due on a credit card each month, if possible, to reduce the amount of interest paid over time and pay off the debt more quickly.
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Credit Card Balance:
Minimum Payment Percentage: (Typically 1% to 3%)
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