raaman
Valued Contributor
Pay minimum on Credit Card only when necessary.
What you can do to avoid lengthening a debt and not paying more interest. If you have a credit card and each month you pay only the minimum, you have to be careful. It is because you will end up paying more interest and extend your debt for a long time.
The best thing for you to do is to make the payment so as not to generate interest or, where applicable, pay more than the requested amount. So, what are the minimum payments? The minimum payment is a percentage of the total debt to be paid for the use of the card and the outstanding instalments for the month.
It depends on the bank and the expenditure incurred. Through it, you prevent your credit card from being disabled, the collection of default interest (although you will pay ordinary interest), charges for non-payment, and affecting your credit status. However, making this payment periodically can cause you a long-term financial problem.
Debt that spreads and grows:
The minimum credit card payment, depending on each bank, is between 2% and 5% of the total balance. This means that cardholders pay interest for the rest of the uncovered balance and by doing it month by month the debt will not only extend, but will also be greater.
In addition, the cost of credit through credit cards not only consists of the interest that is paid when you do not cover the total amount owed at the end of each month, it also adds a proportion of the fees that are paid for opening, annuity and other commissions.
What you can do to avoid lengthening a debt and not paying more interest. If you have a credit card and each month you pay only the minimum, you have to be careful. It is because you will end up paying more interest and extend your debt for a long time.
The best thing for you to do is to make the payment so as not to generate interest or, where applicable, pay more than the requested amount. So, what are the minimum payments? The minimum payment is a percentage of the total debt to be paid for the use of the card and the outstanding instalments for the month.
It depends on the bank and the expenditure incurred. Through it, you prevent your credit card from being disabled, the collection of default interest (although you will pay ordinary interest), charges for non-payment, and affecting your credit status. However, making this payment periodically can cause you a long-term financial problem.
Debt that spreads and grows:
The minimum credit card payment, depending on each bank, is between 2% and 5% of the total balance. This means that cardholders pay interest for the rest of the uncovered balance and by doing it month by month the debt will not only extend, but will also be greater.
In addition, the cost of credit through credit cards not only consists of the interest that is paid when you do not cover the total amount owed at the end of each month, it also adds a proportion of the fees that are paid for opening, annuity and other commissions.
