Minimum payment

We are all used to seeing a minimum payment on our credit card bills, and this is indeed what this refers to in a financial sense.

The minimum payment is often in the region of 1/30th to 1/40th of the balance due though it varies from provider to provider and indeed from country to country.

Typically though the minimum payment is a very small amount in comparison to the total balance that must be paid off.

If the minimum payment is not made on each payment schedule (usually a monthly schedule) then the account holder may be in contravention of the cardholder agreement.

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