Minimum payment
Keeps the account current if paid on time, but debt remains.
Credit & Debt
The minimum payment keeps a credit card account current, but paying only the minimum can keep the balance outstanding for a long time.
Credit 101 • 05
It is designed to satisfy the account requirement, not necessarily to clear the debt quickly.
If payments are small, much of the balance can survive into the next month.
Keeps the account current if paid on time, but debt remains.
Usually avoids purchase interest under the grace-period rules.
Check your statement instead of assuming one universal percentage.
Remember this
The faster principal falls, the less time interest has to work against you.