by BrutalBodyShots
Many of us give the [sound] advice of “always pay your CC statement balance in full monthly” as it’s the right approach for financial health.
Those new to credit cards get confused by the difference between the statement balance and the “minimum payment” required. That’s exactly what the credit card companies want, as this confusion leads many to believe that the “minimum payment” is an acceptable financial move. For the credit card company it is for sure, as they’re then making revenue from interest off of you. For the customer however, it’s a poor financial move.
My advice to anyone just starting out with credit cards is to pretend the “minimum payment” field on your statement doesn’t exist. The same way a “minimum payment” isn’t offered on any other monthly bill (cable, phone, insurance, whatever) just operate with the mindset that a minimum payment is not acceptable on a CC either. View the statement balance on your CC bill AS your minimum payment required each month. You’ll never get yourself into financial trouble with this mindset.