Probably obvious for a lot of you that minimum balance payment means accrued interest and would think the same for everyone who has a credit card.  Unfortunately not. I met someone not long ago who ended up having the collections department of his bank calling him to reclaim the interest he had on his credit card. He had no idea that by only paying the min balance on his card every month, he was accruing interest on his balance.  It took him 3 years of work to pay it all back plus his principal.  Understand the product you are taking on before signing any agreement and taking on any credit