Minimum payment is probably the best trap in the credit card world. Card issuers make it seem so easy: even if you owe thousands of dollars, you could settle that monthly bill with a minimum payment that’s just a small percentage of your actual balance. Minimum payments can be as low as 1% of balance, so you could pay less than $100 on a balance that’s in the four digits!
Does your credit card give you something back each time the cash register rings? More than half of cards issued have a rewards component — typically worth $0.01 to $0.03 per dollar spent — from free Frappucinos to contributions to Junior’s college fund.
The next time you’re sifting through your change purse to pay for your morning latte, consider this: reaching for a credit or debit card instead will save you time – and perhaps even some money.
Credit Cards
