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Is credit card ‘minimum due’ amount the biggest trap? Here's why paying less now can cost you more later | Explained
Mint 1 hr ago·5 Oct 2026, 7:26 am
Credit cards offer a convenient way to manage expenses, but the 'minimum due' payment option can be a financial trap. Paying only this small amount, usually a percentage of your total outstanding balance, satisfies the bank's requirement but triggers high interest charges on the remaining unpaid amount. This interest is often compounded daily, meaning the debt can grow rapidly even if you stop using the card.
For investors, this matters because high credit card debt can negatively impact your credit score. A lower score may affect your ability to secure loans or favorable interest rates in the future. To avoid this debt spiral, it is generally recommended to pay the full outstanding amount whenever possible, rather than just the minimum due.
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