How To Manage Your Minimum Payment On Your Credit Card

If you’re only making the minimum payment on your credit card each month, it could take years to clear your balance. Follow our simple steps and you could save yourself money and time.

What is a minimum repayment?

Unlike loans and mortgages, your credit card offers you the ability to choose what you repay each month. Technically, you only need to make the minimum payment as set out on your statement. This is the smallest amount you are required to pay back each month.

If money is tight, it may make sense to just make the minimum payment, but it’s important to be aware of the consequences. Your credit card’s minimum payments drop a little each month. At first this sounds like good news, but it actually means you’ll be making interest payments for a very long time. Even a small debt will end up drawn out over a long period of time, costing you a significant amount of money in interest. Luckily, there’s a simple solution. By opting for fixed monthly payments, you can choose the amount that suits you, while paying off your balance quicker.

Use this repayment calculator, on the Money Advice service website, to see how much interest you could potentially save by paying more than the minimum payment each month on any credit cards you have.

Missing a payment or not paying the amount required could affect your ability to get credit in the future. If you’re struggling to meet your minimum payment, speak to us or The Money Advice Servicecould help.

Three helpful tips

  1. Protect yourself with a Direct Debit: If you can’t afford to pay off your balance, either partially or in full, set up a Direct Debit to cover at least the minimum payment on your card. Missing a payment will have a negative effect on your credit rating.
  2. Set a fixed payment: If you can afford to pay off more than the minimum repayment, make a monthly payment that you’re comfortable with, and keep this payment fixed, if possible.
  3. Pay in full: Remember, by paying off your debt in full you will save yourself hundreds, if not thousands of pounds in interest. The quicker you repay, the less it costs. With marbles, instant online access, balance updates and payment reminders give you the tools you need to stay in control of your account.

Representative Example:

Interest rate for purchases34.9% P.A.(variable)
With a representative34.9% APR(variable)
Assumed credit limit£ 1,200