 TITLE: What Happens If You Only Pay the Minimum on Your Credit Card? CONTENT: Only Making Minimum Payments Means You Pay More in Interest\n-----------------------------------------------------------\nYou may have more money in your pocket each month if you only make the minimum payment, but you'll end up paying far than your original balance by the time you pay it off. Plus, only paying the minimum means you'll be in debt for much longer. Why? Only a small percentage of a minimum payment is applied to the card's principal balance—the remainder takes care of the accrued interest and fees. So, if your credit card has a 21% interest rate and $4,000 balance, paying the minimum of 1% plus interest each month will keep you in debt for 257 months. Plus, you will spend $6,374.64 in interest, bringing the total cost you'll pay to more than $10,000.\nIf you have a card that offers a promotional 0% APR period on purchases, you don't necessarily have to pay more than the minimum right away to avoid racking up interest charges. These cards allow you to make purchases without accruing interest for a set period if you make the minimum monthly payments on time. If at all possible, have the balance paid in full before the promotional interest-free period ends or else the credit card issuer will begin to charge interest on any balance that remains. END