What does Minimum Payment mean?
The minimum monthly payment calculation always depends on the banking institution which issues your card and also on your line of credit and other factors pertaining to the type of credit or credit card that you own. It is very important that you pay close attention to the terms and conditions displayed in the fine print prior to signing up for as credit contract, because there is displayed the most important information regarding the billing cycles, late payment fees and other.
If you fall behind with your payments, mainly if you cannot make those minimum required payments, there will be interest added, which accumulates quickly and you may end up in serious debt before you know it. A very good way of being able to make some savings is, if you contract a credit which has an introductory period of 0 APR (Annual Percentage Rate) for let’s say 6 months. This simply means, that if you manage to make overpayments (significantly higher than the minimum payment), and you can finish off your credit in those 6 months without paying any interest.