what happens if you only keep paying minimum amount on cc ..
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Would love if one can give with example
If cc spent amount is 10k
Normally minimum payable is 500
If we pay only 500, then next month bill will have additional interest of 9500 X 3% pm …285
Principal outstanding ..9500
And current month expenses.
Is this right?
Are there any other charges?
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Thank you..I didn’t know that
Max amount of that 500 will be interest part, principal will be somewhat low that is 350 interest including GST 150 principal. So next month interest will be on 9850 not 9500. As you keep paying principle keeps increasing and interest decreasing, at mid way that is 5000 principle part will be more than interest.
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If cc spent amount is 10k
Normally minimum payable is 500
If we pay only 500, then next month bill will have additional interest of 9500 X 3% pm …285
Principal outstanding ..9500
And current month expenses.
>>
And current month expenses including interest (from the purchase date.)
And current month expenses including interest (from the purchase date.)
Many other charges like GST.
Interest will be charged from date of purchase for all transactions, NOT from Due date
So no free credit days
Paying minimum only guarantees the Card Owners that u did not runaway