Credit Card: Credit card craze is increasing very fast in today’s time. The reason behind this is many benefits on the card. If you pay with credit card, then many benefits like discount offer, reward point are available. But many times people forget that the credit card is also a kind of debt. The more beneficial it is, the harmful can also be.
How much is it right to pay bill minimum
On using a credit card, you have to pay a bill after a time. But on the matter of filling the bill, some people either pay the entire bill, otherwise some bills pay the minimum bill instead of paying. Usually the minimum payment of the credit card bill is up to 5% of the entire bill.
If you fill the minimum of the bill at the time, then you can avoid a penalty that does not fill the bill. Not only this, if you do not have money, then you can also avoid the penalty on you by making minimum payment.
Loss of minimal dew filling
If you do not have money, then it can be beneficial for you to fill the minimum due but there is a lot of loss of filling it. You have to give a month -long extra interest on the remaining card bill. Which is from 3 to 4 percent. Meaning that annually you will have to pay high interest of 30 to 40 percent. That too from the day you have shopped.
Apart from this, it also affects your credit score. Along with this, by filling the minimum due to this, you can also gradually get caught in the debt trap. At the same time, in the coming time, you will not get any interest free period on new purchases with credit cards.