The Shocking Truth About Paying Only the Minimum on Your Credit Card

Paying Only the Minimum on Your Credit Card

Credit cards are convenient financial tools that allow us to make purchases with ease. However, it is important to understand that credit card debt can have long-term consequences if not managed properly. While the allure of tapping or swiping for instant gratification may seem like magic, it is crucial to consider the reality of the financial obligations that come with it.

One of the biggest misconceptions surrounding credit cards is that making only the credit card minimum due is sufficient. Unfortunately, this is not the case and can lead to a lifetime of debt. It is essential to understand that the interest rates and fees associated with credit card balances can add up quickly and compound over time. This can result in a cycle of never-ending payments, where the balance never seems to decrease.

Therefore, it is important to use credit cards responsibly and pay off the balance in full each month to avoid accruing interest and fees. While the convenience of credit cards is undeniable, it is important to be mindful of the long-term financial implications and take steps to manage debt effectively.

Benefits of Paying the Minimum Payment Due

Listed below are the benefits of paying the minimum amount due on a credit card

  • Your credit card provider will ask for an additional fee for late payment. But you can avoid this by only paying the credit card minimum due you owe.
  • This can greatly benefit you during financial distress – as you will get to manage your finances more effectively.
  • Late payment of credit card amount affects your credit score – paying the minimum amount due can easily avoid this situation.

Dreadful Consequences Of Paying Only The Minimum Payment Due

Most credit card providers will ask you to pay only 1%-3% of your total balance every month, which sounds enticing if you are on a tight budget. However, going that route will cost you money in the long run. 

Here are the consequences of only paying the credit card minimum due.

  • While keeping your credit card active by only paying the credit card minimum due sounds like a great idea initially, keep in mind that there won’t be an interest-free period of credit, and you’ll be required to pay a high-interest rate.
  • Even if you decide to refrain from making any further purchases until you have paid off the balance due, even if you’re only making the minimum payments required, your debt will not go down. This is because a credit card is an open-ended line of credit. Every day, interest is added to the outstanding balance. You can quickly and unknowingly fall into a debt trap if the debt is not properly managed.

What You Should Do If You Are Unable to Pay Off Your Entire Credit Card Balance Each Month

Making at least the minimum monthly payment is crucial to prevent late fees and penalties and protect your credit score. If possible, you should pay the entire monthly balance to keep low utilization, save money on interest, and perhaps even raise your credit score.

Now, it’s true that not all months are the same – there are times when managing finances becomes a big hassle. Here are some great ways to manage such scenarios.

  • If you cannot pay off the entire credit card balance, pay whatever amount you can afford. Doing this lets you pay off your debt more quickly and free up money to achieve other financial objectives. Setting up a fixed budget can assist you in controlling your spending. Lower your spending and use the extra money to pay off your credit card debts. 
  • Try looking for additional sources of income, such as taking on part-time work or freelancing to fund your debt payment.
  • Choose a credit card repayment strategy to prioritize the debts you want to pay off first. The avalanche method, for instance, instructs you to concentrate on the balances with the highest interest rate. If this method is not for you, use the snowball approach, which instructs you to start by concentrating on the credit card that has the lowest balance.
  • Another choice, if you’re having payment issues, is credit counseling. Typically, non-profit organizations that educate consumers on good money management practices offer this service without charge. They can further assist you in developing a debt reduction strategy to lower your balances. Call the credit card company to explain your situation if you need help making the minimum payments. Many credit card providers offer a friendly payment plan to such cardholders.  


Experts always advise paying off the full bill amount – only make minimum payments when you’re in a severe financial bind. Making several small monthly payments to keep your total payment low will make it easier to pay the full amount. It will not only save you from unfortunate future situations but also help you maintain a healthy credit score.

Also check – How To Apply For OneCard Credit Card?

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