Minimum Payment

minimum amount that a consumer is required to pay on a revolving charge account in order to keep the account in good standing. If the minimum payment is not made, late payment penalties are due. If the minimum is still not paid within a few months, credit privileges may be revoked. If a consumer pays just the minimum due, interest charges continue to accrue on all outstanding balances.
In some cases, a credit card issuer will waive the minimum payment for a month or two, as long as the cardholder has demonstrated a good payment history. If the cardholder does not make any minimum payment in such a case, interest charges accrue on the entire outstanding balance.

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