.Minimum Repayment Explained 🤔

Have you ever received your credit card statement and seen the term "minimum repayment"? It’s that number listed on your bill, but do you really know what it means? 😊 The minimum repayment is the smallest amount you must pay back to your credit card issuer each month to avoid late fees or penalties. Typically, it's calculated as a percentage of your total outstanding balance, often around 2-3%. 💳

While paying the minimum seems like an easy way out, it can lead to higher interest charges over time. Why? Because any remaining balance will accrue interest. For example, if your bill is $1,000 and the minimum repayment is 2%, you'd only need to pay $20—but the rest will continue to gather interest! ⏰

So, what should you do? Whenever possible, aim to pay more than the minimum amount. This not only reduces your overall debt faster but also cuts down on interest payments. Plus, it helps improve your credit score in the long run! 💪🌟

Remember, managing your finances wisely starts with understanding these small yet crucial details. Stay informed, and keep your financial health in check! 💡

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