When it comes to credit cards or loans, the term "minimum repayment amount" often pops up. 😅 But what does it actually mean? Simply put, it’s the smallest amount you’re required to pay back each month to avoid late fees or penalties. 📅 Missing this can damage your credit score, so it's important to take it seriously! 💼

The minimum repayment is usually calculated as a percentage of your total outstanding balance, plus any interest and charges. 📊 For example, if your card has a balance of $1,000 and the minimum repayment is 2%, you’d need to pay at least $20. However, paying only the minimum might not cover all the interest, which could lead to a larger debt over time. 💸

While meeting the minimum requirement keeps you in good standing with lenders, it’s always better to pay more if possible. 😊 This reduces the overall interest and helps you clear your debt faster. So next time, consider paying above the minimum—it’s a smart financial move! 💡