Minimum Payment

Full Explanation

The minimum payment is the lowest amount you must pay toward your credit card balance each month to keep the account in good standing and avoid late fees. In Canada, minimum payments are typically set at $10 or 2–3% of the outstanding balance, whichever is greater, though this varies by issuer. Paying only the minimum on a $5,000 balance at 19.99% interest would take over 30 years to pay off and cost over $8,000 in interest. Credit card statements in Canada are now required to show how long it will take to pay off the balance making only minimum payments.