BOSS: The Minimum Payment Monster
Lesson 12 of 12 in our free Borrowing guide: a 5-minute money game with the key points below.
This lesson is in the full version.
Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Borrowing is free for everyone.
Got a code? Unlock this lesson
Questions you'll answer
Mo's card balance is £1,000. The minimum payment is 2.5% of the balance. What's this month's minimum?
Final boss question: Mo can afford £60 a month towards the card. What's the best move?
Quick facts
- Fact: “Paying only the minimum can mean many years of repayments on a card balance.” — Because interest takes a big chunk of each small payment.
- Myth: “A total-cost cap applies to credit cards like it does to payday loans.” — The 100% total cost cap is for high-cost short-term credit (payday loans), not credit cards.
- Fact: “If debts feel unmanageable, free debt advice charities can help you make a plan.” — Free, confidential and judgement-free. You don't have to work it out alone.