What is a minimum payment on a credit card?

A minimum payment on a credit card is the smallest amount of money you must pay each month on your credit card. This is usually a percentage of the total balance due on the card (often around 2-3%) or a set amount (usually between $25-$35), whichever is greater. This payment is due on the day specified on the statement or in the contract. Credit card law in Texas requires minimum payments to pay at least the full amount of interest due and 1% of the total balance. A payment that’s less than the minimum specified may result in late fees or other penalties from the credit card company. Additionally, when making a minimum payment, it’s important to be aware that it may not be enough to pay off the balance by the end of the term. Paying the minimum payment may result in paying more in interest in the long run. If you are having difficulty making your minimum payments, it’s important to reach out to your credit card company to figure out a payment plan. The credit card company may offer an extension on the due date or other options that can help you manage your payments. In some cases, you may also be able to transfer your balance to another card with a lower interest rate. Making minimum payments is an important aspect of credit card law in Texas, and it’s important to understand the rules that apply to ensure you’re in compliance.

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