If you pay the minimum toward your balance each month, here’s what you can expect to happen:
Paying down your debt will take much longer.You’ll rack up bigger interest charges.Your credit score could take a hit.
Credit card issuers tend to set minimum payment requirements at rock-bottom levels. You’ll generally owe either a fixed amount — often $25 — or a percentage of the balance, whichever’s greater. Some cards require you to pay only 1% or 2% of the balance each month, plus any fees and accrued interest. Making these small payments on time will let you avoid late fees
, but you won’t make any real progress on paying down your balance.
