💳 All credit card users must have seen the "Minimum Amount Due" line in your monthly statements. This is the minimum amount that you have to pay in order to keep a good standing with the credit card company. This is merely a percentage of the total dues for the month (generally around 5%) and can change from month to month as per your expenditures. If you feel that you can get away with paying just the minimum amount and not face any penalties — you are grossly mistaken! You have fallen for the "minimum dues trap". How Credit Card Interest Works To know the dangers of paying only the minimum dues, you need to understand how interest is charged by credit card companies. There are 3 aspects you must remember: 1. Interest Rate If you study your card, the monthly interest charged is around 3–4%. That may not seem much, but annualized, this balloons to 36–48% per year . Yes, you read that right! Key Takeaway: A 3% monthly interest is not small — it compounds...
Your go-to guide for personal finance, behavioral finance, and smart investing. Welcome to a clutter-free space in the world of personal finance and investments. In an age of information overload, this blog simplifies the basics of money management, investing, and mutual funds — making them easy to understand for beginners and seasoned investors alike. Here, we focus not just on numbers, but on the psychology behind them. Behavioral finance plays a key role in helping you recognize common biases