The Story of the Minimum Payment

The minimum payment is that amount found in your credit card statement that is required to be paid for the month to ensure that your account remains in good standing. However, even if the credit record in seemingly preserved, the interest that has to be paid for the unpaid balance may not add up positively for the card holder.

You will actually end up paying more for purchases in terms of the interest charges generated by not paying in full. It will approximately take more than ten (10) years to pay a $1,000 balance with an 18% annual interest rate, granting that the minimum amount due is religiously paid. It doesn’t make sense to purchase an item on sale if you intend to pay in the manner since the effective price after interest would be double.