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What are the minimum payments on a credit card?
Depends on how much you owe. The more you owe, the more the minimum payment.
Why is it unwise to pay minimum payments on your credit card?
It is unwise to pay minimum payments due on credit cards because the payment will cover only a small portion of the principal amount and more on interest and financial charges.
Why not make minimum payments on credit cards?
You pay longer & more interest overall.
Is it better to pay the statement balance in full or make minimum payments on credit card bills?
It is better to pay the statement balance in full on credit card bills rather than making minimum payments. This helps avoid accumulating high interest charges and debt over time.
What happens if you only pay partial payments on your credit card payments?
You MUST make the minimum payments or the company will come after you. If you just make the minimum payments you will eventually clear the debt but the rate of interest on credit cards is very high. If you are having trouble financially the first thing to do is to stop using a credit card (cut it up) then if you can not afford the minimum payments go and seek help from a third party (in the UK a free advice centre) - they will help you with your debt problems and will be able to get the interest on your card debt stopped - (you will still have to make small payments to pay off the debt but if you meet these the debt will no longer grow). Also some debts are more 'important' than others - your taxes, mortgage, rent etc. A credit card is an unsecured debt and you will not be sent to prison for it or thrown out of your home. Get Help!!
