Deep, deep dive
Your credit card repayments
The minimum repayment for your credit card statement each month is either 5% of your balance, or a fixed amount given by the bank (usually RM25 or RM50).
Let’s say you got yourself a credit card and you spent RM500 on it in the first month. Your statement will look like this:
The minimum amount you need to pay is RM25 (note: for Maybank the minimum repayment is the higher of either 5% of the credit balance or RM25).
But be aware that if you only make the minimum payment, and use your card to buy other things in future months, your credit card balance will grow very quickly. As a result, the minimum payment you need to make will also grow!
For example, if your credit card balance reaches RM5,000 a few months down the road because you have been only making the minimum payment, your new minimum payment will be RM250. For later months, the minimum payment will be even more!
This will continue until you’ve paid off all your credit card debt which, depending on how much you pay each month, could take a long time.