What is a minimum payment on a credit card?

A minimum payment on a credit card is the amount of money that you must pay your credit card company each month. This amount is calculated based on a percentage of your outstanding balance. In Washington, the minimum payment required is determined by the Credit Card Law. The minimum payment is typically between 1-3% of the balance. For example, if the balance is $1,000 the minimum payment would range from $10 to $30. The minimum payment is important because it ensures that you are keeping up with your debt payments each month. However, it is important to note that paying the minimum amount may not always be the best choice. Since the minimum payment is calculated as a percentage of the balance, if you only make the minimum payments you may have a hard time ever paying off the balance. Making more than the minimum payment can help pay off the balance quicker and reduce total interest over time. It is important to understand your credit card terms and conditions and to make payments on time to keep your credit in good standing. It is also important to remember that the minimum payment is the least amount you can pay, but you may be able to pay more to lower your balance faster.

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