Minimum Payment
The smallest amount your card issuer will accept each month — designed to keep the debt alive, not to clear it.
A credit card minimum payment is typically 2–5% of the balance or a small fixed floor, whichever is greater. Paying it keeps your account in good standing — and keeps the remaining balance compounding at the card’s interest rate.
On a typical NZ credit card rate, a few thousand dollars paid at minimums can take well over a decade to clear, with interest costing more than the original purchases. Minimums are a floor, never a plan.
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