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How does a credit card work and why should I try to pay more than the minimum every month?

Credit cards are designed to allow payment flexibility so you're able to make low payments for short periods of time. This flexibility allows you to cover periods of high expenditure and spread the cost over a longer period. However, if low payments are made for a long period it will increase the time it takes you to pay down the entire balance.

We inform customers through statements and regular communications that if you only ever make the minimum payment each month, it will take you longer and cost you more in interest to clear your balance. This is because the minimum only clears a small amount from your balance each month and includes your monthly interest.  

If you can’t afford to increase your minimum, making additional payments when you can will also help reduce down your balance. 

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