Pay Your Card in Full
Personal Finance · Beginner
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A credit card is free only if you pay the full statement balance every month. The minimum payment is the most expensive trap in the system.
Micro-habits to get started
Small actions of a few minutes to start this habit:
Look at the statement balance, not the minimum
Open your statement and write down the full balance billed for the month. That is the number to pay.
The minimum payment exists to keep you in debt for years, not to help you.
2 minSchedule automatic full payment
Set up autopay at your bank for the full statement balance on the due date.
A single forgotten due date can cost you interest and a blemish on your credit report.
10 minFreeze the card if you fall short
If you couldn't pay the full balance this month, stop using the card until it's paid off.
As long as you carry a balance, every new purchase starts accruing interest immediately.
1 min