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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Tristin Key

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1 June, 01:50

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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Leonel Manning · 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.