How and why paying a minimum balance and missing a payment can each impact the final cost of the a purchase

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Kelton Mcgrath

1 July, 04:16

How and why paying a minimum balance and missing a payment can each impact the final cost of the a purchase

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Laurel Boyer · Answer 1

This is how people end up with bad credit, actually.

When you pay the minimum payment, you're also paying for the interest involved. So, when you miss a payment, you're now paying double the interest therefore, what you originally paid $50 for (example) between interest and late payments, you'll end up paying $200 for.