9 Critical Credit Card Mistakes You Didn’t Know You Were Making

2. Making minimum payments

Banks do give you the option of paying a nominal sum as a ‘minimum payment’ on your purchase every month but it’s not something you should fall for. The interest that banks charge on your outstanding amount is quite high, and if you keep paying just the minimum amount, you would end up shelling out a lot more as interest. Many times even more than the actual value of the product. So best practice would be to save by cutting costs on other things and pay as much of the bill as you can. Remember, more the amount, more the interest.