The minimum payment or the minimum due is typically the minimal amount that you pay every month in order to avoid being late on your payments or going past due. You must pay the minimum due before the due date in order to prevent delinquency or defaulting on your account.

Generally, the minimum due is 2 percent of the balance due. Experts encourage you to pay more than the minimum due to avoid paying excess finance charges. However, there is a common myth amongst people who think that they can avoid financial tension by paying only the minimum due each month. Suppose you have a $1000 balance on your account with a 13%APR. Consider that you are a sort of person who makes minimum payments on time. You will owe over $550 after three years and you will still be in debt for that one time charge with that card. If by any event, you are late on some other card payments and your card issuer raises the interest on this particular card due your defaulting on other credit cards, then you will be clearly in credit card debt.

It is better to pay off the balance in full every month. Otherwise there is a fair chance of your incurring interest charge and falling into a debt trap. Experts have observed that a minimum due of $50 per month on a credit card of a balance of $3900 is something which can be never paid off only on the strength of minimum payments each month. Let