Today, we’re launching a new promotion designed to help Petal members start 2021 on a high note by breaking one of the credit world’s most expensive habits: making only the minimum payment.
Paying only the minimum on your credit card bill may sometimes make short-term sense –it’s better than not paying your bill at all, for example, or paying late – but it’s a terrible long-term financial strategy: you could end up paying a fortune in additional interest, and it will take you much longer to pay down your debt – maybe even decades.
Mainstream credit cards make it easy to fall into the minimum payment trap by suggesting “pay the minimum” as the default when you pay your bill. The longer you’re in debt and accruing interest, the better it is for their bottom line.