At the very least you’ll need to pay the minimum monthly payment by the due date. However, it’s important to note that any amounts you don’t pay will incur interest.
Going back to our example, if your total balance is $750 and you only pay $500, you’ll be charged interest on the remaining $250 until you pay it back in full.
Paying your credit card statement in full and before the due date is by far the cleverest way to save on interest charges. Plus, if your purchases are within an interest-free period, you could avoid paying interest altogether!
If you're unable to pay off the statement by the due date, here's a tip to save on interest. Simply make several small payments until you have paid your balance in full. As interest charges are calculated on your daily outstanding balance and charged monthly at the end of the statement period, you’ll save on interest as your balance reduces.
If you take up this option, you may also want to avoid making additional purchases or cash advances. These extra transactions will be added to your balance and incur interest. Once you’ve paid off your balance, your interest free period will reset, and you can start using your card again.
Please note: if you don’t pay the minimum payment before the due date you will have to pay a late fee as well as interest.