3 Reasons To Pay More Than The Minimum Amount Due On Credit Cards

Credit cards bring financial ease and freedom on spending by postponing ones debts to a later date. They are now widely used across India to make both small and big purchases due to the convinience and security in payments that they come with.

However, when it comes to paying the bills, people choose to act on it differently. Some choose to pay as much of the outstanding amount as possible, while others choose to just pay the minimum amount due on the card. Infact, paying minimum amount due has reportedly become a habit among users as their spending habits change, making the smaller amount payable an easier way out.

This minimum amount due on credit card is usually 5 percent of the outstanding balance and as the name suggests, the user is required to pay this amount to keep the card active. Paying it also means that your service provider will not charge you a late payment fee. But the habit of paying the minimum amount could land you in a debt trap.

If you are one of those people who only pays the minimum amount due on credit cards, here are 5 reasons why you should start paying more.

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