Minimum payment and interest?

Question

I am confused in how the interest and minimum payment works. Suppose I have a credit card bill for $400 and it says minimum payment of $20 and I pay that $20, will I get charged any interest fees?

Also, if I am buying something that says $39/month on an approved credit card, then I would have to pay only $39/month until the balance is zero... am I right? Please let me know or simplfy my case

thanks

Answer 1

Source: Today's business section Los Angeles Daily News. (www.dailynews.com). "A $3,000 balance at 18% interest will take more than 22 years to repay if you only pay the minumum. If you pay just $75, but do it every month rather than just the first month, you cna repay that balance in approximately five years." That's assuming you don't stack more debt on that card.
Are you beginning to get the picture? This is just a small part of a very good article. Go to the website and read it.

Answer 2

The credit companies have figured out how to give you an attractive monthly minimum that really just barely services the interest. If you pay only the monthly minimum you will never pay off the balance.

On your second question, the 39/month is the minimum and, again, you will take a very long time to pay it off.

The minimum is there really to help the credit company. You can use it occasionally if you have a short month but using it all the time while just dig you deeper into a hole.

Answer 3

Sure, you'll get charged interest each month unless you pay the entire balance.

And yes, if the agreement is you'll pay $39 a month, then you'll pay that until the balance is zero. In most cases though, unless the agreement says otherwise, interest will be added each month to the balance for what is still unpaid.

Answer 4

you will still get charged interest on the remaining balance.

if you buy something on an approved cc for $39/month, you will be charged interest on the $39 and interest on an approved cc, I'm assuming it is for a particular store, is usually generally high. It's best to not purchase something you can't afford on a cc. Why buy something and pay extra because of the interests. It's best to only use cc's for emergencies

Answer 5

As others have pronounced, the $10 isn't your interest. it somewhat is the minimum you will possibly desire to pay the mastercard organization. Paying it a minimum of helps you to evade getting a neglected charge cost as properly as defaulting, which will deliver your interest value skyrocketing. The $40 seven is the interest on your purchases. you will proceed getting interest expenses each month except you pay off the full stability ($1540 subsequently) of each fact. in case you won't be in a position to pay this, i might propose returning products you do not % which you charged to the cardboard.

Answer 6

that 20 dollars would be the minimum payment (usually 5%) but they still charge you interest the rest.

Answer 7

judy summed it up -- maybe this Will clear it up lets say the item is 390 dollars at 20% interest -- you can bet the bottom dollar instead of 10 payments it will be more like 15 or so, don't have cal handy. just take my word for it.

Answer 8

dont do it they charge you so much i would just buy what i could afford