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Glossary

Minimum Payment

The smallest amount you can pay on a debt to keep it in good standing.

The minimum payment is the least a lender requires each month, often a small percentage of a credit-card balance. Paying only the minimum stretches repayment over years and maximizes interest.

Paying even a little above the minimum dramatically shortens the payoff time, because more goes to principal.

Put it into practiceTry the Minimum Payment CalculatorRun your own numbers in seconds — free and private.

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