What does it mean if I only make the minimum monthly repayment on my balance?

What does it mean if I only make the minimum monthly repayment on my balance?

The minimum monthly repayment on a credit card is the lowest amount you are required to pay to meet your credit card contract. By paying this amount on the payment due date, you'll avoid late fees, maintain a good repayment history, but you will still pay interest on the remaining amount owing. You should always try and pay more than the minimum amount so your credit card balance is paid off quicker and less interest is accrued.

For example, if you owe a balance of $1100 on your credit card with the minimum monthly repayment being $25, you will pay interest on the remaining $1075.

Find out more about how the minimum repayment amount works.