Symple Lending explains what happens when you make minimum payments on credit card debt
Your credit card's minimum payment is the smallest amount you can pay without being considered late-paying. When your income is a little too short for all your bills on occasion, having this minimum to fall back on can seem like a lifesaver. However, there are risks lurking inside this apparent benefit; you need to know what paying the minimum really means if you're going to avoid the pitfalls. Why You Might Need the Minimum Sometimes There may be circumstances that make it necessary for you to pay just the minimum on your credit balance. Suppose you suddenly lost your job or had a major medical expense that took a big bite out of your savings. It's understandable you might need to temporarily fall back on the minimum payment. If money is extra-tight as your credit card due date approaches, the minimum can allow you to make an acceptable payment on time. This saves your account from being hit by late fees and keeps your account active. While your credit score can be harme...