Finance glossary
Minimum Payment
Also known as: Minimum monthly payment
In simple terms
The minimum payment is the smallest amount you must pay towards your credit card each month to keep the account in good order. Paying only the minimum keeps you out of trouble but costs a lot in interest.
On this page
What does minimum payment mean?
The minimum payment is the smallest sum your credit card provider requires you to pay each month. It is shown on every statement and is usually a small percentage of the balance (often around 1–3%), or a small fixed amount, whichever is greater.
Paying at least the minimum by the due date keeps your account in good standing and avoids late fees and marks on your credit file — but it is designed only to stop things getting worse, not to clear the debt.
How the minimum payment works
Because the minimum is a small slice of the balance, most of it can go on interest, leaving the debt barely reducing. As the balance falls, the minimum payment falls too, dragging the payoff out for years.
UK credit card statements must show how long it would take, and how much it would cost, to clear the balance paying only the minimum — usually a sobering figure that shows why paying more is worthwhile.
How could this affect me?
Paying only the minimum can turn a modest balance into years of repayments and a great deal of interest. Even paying a little more than the minimum each month can shorten that dramatically and cut the total cost.
If you can only afford the minimum for a long stretch, that can be a sign of persistent debt. Card providers must step in and help if you have been paying mostly interest and charges over a long period.
Example
A £2,000 balance at 24.9% APR, paying only the minimum (about 2.5% or £25, whichever is greater):
| Balance | £2,000 |
|---|---|
| APR | 24.9% |
| Paying only the minimum | Around 27 years to clear |
| Approx. total interest paid | Well over £2,500 |
| Paying a fixed £100 a month instead | Cleared in about 2 years |
Figures are illustrative and rounded, and depend on your card’s exact minimum-payment formula. The lesson holds: paying more than the minimum saves a lot.
Things to watch out for
- Paying only the minimum can take decades to clear the balance.
- Most of a minimum payment can go on interest, not the debt itself.
- The minimum falls as the balance falls, stretching the payoff even longer.
- Persistently paying only the minimum can signal a debt problem — check your statement’s cost figures.
Know your rights
- UK credit card statements must show how long it would take to clear the balance, and the total cost, if you pay only the minimum.
- Under FCA persistent-debt rules, card providers must contact you and offer help if you have paid more in interest and charges than you have repaid over an extended period.
- If you are in financial difficulty, lenders must treat you fairly and consider forbearance.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- MoneyHelper, How credit card minimum payments work (opens in a new tab). Accessed 22 Aug 2026.
- FCA, CONC 6 — persistent debt and post-contract requirements (opens in a new tab). Accessed 22 Aug 2026.