Glossary
Minimum Amount Due
The small minimum payment that keeps an account current but triggers interest.
The minimum amount due is a fraction of your statement balance. Paying only this keeps the account current but starts interest on the entire balance and usually removes the interest-free period on new spends. It is one of the most expensive habits in personal finance.
Related guides
More glossary terms
DeductibleCo-payment (Co-pay)IDV (Insured Declared Value)No Claim Bonus (NCB)Claim Settlement Ratio (CSR)Incurred Claim Ratio (ICR)
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