Pitfalls of making minimum payments on your credit cards [Video]

When it comes to credit cards, the term “minimum payment” is often used as a marketing ploy, promising customers that a seemingly small, manageable monthly payment will keep them in good standing with lenders.

A $25 or $50 monthly minimum payment may not sound like much, especially given the high cost of groceries, fuel, and rent today and compared to all of your other expenses, may sound like just a drop in the bucket.

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More often than not, though, “minimum payments” are an illusion designed to entice customers into accruing unmanageable debt. Below, I’ll explain a bit more about how minimum credit card payments work and why they can be problematic. 

What is a minimum payment? 

Are you considering using your credit card to cover the cost of an expensive …