The minimum payment on a credit card is the smallest amount on a credit card bill that can be paid back each month without incurring penalty charges.
Consumers can pay-off any amount of the balance of their card over this sum – which is generally set at between three and five per cent of the total balance of a card and above a token sum (i.e. £5).
Any money left on the card after the minimum payment is made will have interest charged on it.
While it is possible to pay off a credit card by simply making the minimum repayment each month, it is not advisable as paying off a balance in this way can take more than 20 years.