💳 Minimum Amount Due sounds like a lifesaver, but it’s actually a trap you need to avoid! Here's how it works and why paying only the minimum isn't enough:
1️⃣ What is it?
The Minimum Amount Due is the smallest portion of your credit card bill you can pay to avoid late fees. It's usually 5% of your total bill.
2️⃣ The Catch:
When you pay just the minimum, the remaining balance is carried forward with high interest rates (typically 30-40% annually in India). That means your debt keeps growing every month.
3️⃣ The Interest Trap:
Interest is charged not just on the unpaid amount but also on new purchases, as the grace period no longer applies. Essentially, you're paying way more than you borrowed.
4️⃣ Why You Should Pay in Full:
Saves you from hefty interest charges.
Keeps your credit score healthy.
Prevents you from falling into a debt spiral.
🚨 Pro Tip: If you can’t pay the full bill, pay as much as possible above the minimum to reduce interest. Better yet, plan your spending to avoid overshooting your budget.
💡 Financial discipline today = financial freedom tomorrow. Avoid the minimum trap and pay in full whenever possible!
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