Reasons to refrain from the
Habit of Paying only Minimum
Dues on Your Credit Card
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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
Failure
Maintaining bank loans and credit cards are not much of a struggle now a days, because most banks give you the option to repay on EMI or minimum due amount payment respectively. However, most customers fall prey to the option of paying minimum dues on their credit card resulting in increased use of the card, creating more loans.
What does Minimum Dues on Your Credit Card Mean?
Every credit card holder receives a credit card bill every month. The bill is divided in two parts - total dues and minimum dues. The minimum amount due is a small portion of the total bill that the customer needs to pay to avoid penalty for late payment. For instance, if the total due amount is Rs.12,000 then the minimum dues would be Rs.1,200 (the percentage depends from bank to bank) which is usually always feasible for you to give. Thus, if you pay Rs.1,200 against your bill amount of Rs.12000, you will not be charged any penalty.
Do Not Develop the Habit of Paying Minimum Dues On Your Credit Card
Credit card issuers always ensure educating the customers on all of the products and policies. The real money saving trick with respect to credit cards lies in your repayment strategy. Repay as much as you can from the beginning as credit cards come with several money saving options. But again, using it smartly and repaying debts in time is the right move. .
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