What is a credit card minimum payment?

Find out how a minimum payment is calculated and when you need to pay.

On every credit card statement, you will see a minimum payment. While this may not seem like much compared to your overall debt, this amount could be encouraging you to spread your repayments over a longer period and costing you more interest in the long run.

What is a minimum payment and how is it calculated?

A credit card minimum payment is exactly what it sounds like – a minimum payment you must make on your credit card bill by a certain date.

Your bank or provider will work out this payment sum based on your overall account debt and your card’s interest rate.

At the end of each billing cycle, your bank or provider will send you a bill featuring all your recent transactions. Your statement will include the total amount you owe on your credit card, total transactions made during the billing cycle and your minimum payment for that billing cycle.

Banks and credit card providers set different monthly minimum repayments, which can usually be found in your “summary box”. Under UK rules, any credit cards taken out since April 2011 must set the monthly minimum payment of at least 1% of your balance. The table below serves as an example of how a card provider calculates their minimum payment.

Minimum payment example credit card bill

How can I pay the minimum payment?

You usually have two options to pay off your credit card bill every billing cycle.

  • Direct debit. You can set up a direct debit with your bank where you can specify that you’d like to automatically pay the full balance, a fixed amount or just the minimum payment every month. By setting up a direct debit, you’ll guarantee you will never miss a payment and don’t have to worry about penalty fees and damage to your credit record.
  • Manual payments. You can decide how much you want to pay every month – whether it’s the minimum payment, the full balance or somewhere in between. You can pay your credit card company via standing order or bank transfer. This method gives you greater control over how much you are paying, but you’re more at risk of missing payments so you need to make sure you can keep track of the payment deadline.

Should I pay the minimum payment or a larger amount?

It all depends on what you can afford. At the very least, you should make the minimum payment. However, by continuing to pay only the minimum payment, you will take longer to pay off your debt and are likely to incur higher interest fees.

To avoid paying unnecessary interest, it’s a good idea to pay your entire balance, or something in between the minimum payment and your total debt.

As your outstanding debt reduces with every payment, so does the minimum payment required on every new statement. This means small balances on credit cards could take a long time to repay if you continued to make the minimum payments.

Tom has a £4,000 credit card debt

Admin assistant Tom has run up a £4,000 credit card debt, but can only afford the monthly minimum payments of £65.

If Tom continues to pay off his debt at 18.9% APR with the £65 monthly payments, it could take him 13 years to pay it off. Aside from paying back his debt amount of £4,000, he would end up spending a further £6,121 on interest.

A friend suggested he consider a balance transfer card, giving him a promotional 0% interest rate for 24 months, with a one-off fee of 1.4%. Under this offer, Tom could continue to make the monthly minimum payments of £65, but the interest break means he could pay a lot less overall and pay off his debt faster. The balance transfer offer means he could pay off his debt in 6 years and 7 months and only end up spending a further £1,169 on fees and interest. By transferring his debt to a 0% balance transfer offer, this would save Tom £4,952.

Different types of credit cards explained

Compare cards by type

Table: sorted by representative APR, promoted deals first
Name Product Balance transfers Balance transfer fee Purchases Annual/monthly fees Representative APR Incentive Link
M&S Bank Rewards Offer Mastercard
0% for 12 months reverting to 19.9%
2.9% (min. £5)
0% for 12 months reverting to 19.9%
£0
19.9% APR (variable)
Double points on spend in M&S for first 12 months (2 points per £1). Then earn 1 point for every £1 spent at Marks and Spencer's and 1 point for every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
Check eligibility
Santander Everyday Long Term Balance Transfer Credit Card
0% for 31 months reverting to 20.9%
2.75% (min. £5) for 31 months reverting to 3% (min. £5)
0% for 3 months reverting to 20.9%
£0
20.9% APR (variable)
Earn up to 15% cashback with your selected Retailer Offers at selected major retailers.
Representative example: When you spend £1,200 at a purchase rate of 20.9% (variable) p.a., your representative rate is 20.9% APR (variable).
Check eligibility
Santander Everyday No Balance Transfer Fee Credit Card
0% for 18 months reverting to 20.9%
0% for 18 months reverting to 3% (min. £5)
0% for 3 months reverting to 20.9%
£0
20.9% APR (variable)
Earn up to 15% cashback with your selected Retailer Offers at selected major retailers.
Representative example: When you spend £1,200 at a purchase rate of 20.9% p.a. (variable), your representative rate is 20.9% APR (variable).
Check eligibility
M&S Bank Shopping Plus Credit Card
0% for 23 months reverting to 21.9%
2.9% (min. £5)
0% for 23 months reverting to 21.9%
£0
21.9% APR (variable)
Earn 1 point for every £1 spent at Marks and Spencer's and 1 point for every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Check eligibility
The Royal Bank Balance Transfer Credit Card (eligibility criteria apply)
0% for 22 months reverting to 21.9%
0%
0% for 3 months reverting to 21.9% p.a. (variable)
£0
21.9% APR (variable)
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable), your representative rate is 21.9% APR (variable).
Check eligibility
HSBC No Fee Balance Transfer Credit Card Visa
0% for 20 months reverting to 21.9%
0%
21.9%
£0
21.9% APR (variable)
Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away.
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Check eligibility
M&S Bank Transfer Plus Offer Mastercard
0% for 31 months reverting to 21.9%
1.99% (min. £5)
0% for 3 months reverting to 21.9%
£0
21.9% APR (variable)
Earn 1 point for every £1 spent at Marks and Spencer's and 1 point for every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Check eligibility
HSBC Balance Transfer Credit Card
0% for 31 months reverting to 21.9%
2.70% (min. £5)
0% for 3 months reverting to 21.9%
£0
21.9% APR (variable)
£25 cash back when you successfully apply for an HSBC Credit card. Spend or balance transfer over £100 within 60 days of opening the account to be eligible. Available to new customers only. Offer ends 13th February 2022. T&Cs apply
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Check eligibility
The NatWest Balance Transfer Credit Card (eligibility criteria apply)
0% for 22 months reverting to 21.9%
0%
0% for 3 months reverting to 21.9% p.a. (variable)
£0
21.9% APR (variable)
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable), your representative rate is 21.9% APR (variable).
Check eligibility
HSBC Purchase Plus Credit Card Visa
0% for 22 months reverting to 22.9%
2.9% (min. £5) for transfers in first 60 days
0% for 22 months reverting to 22.9%
£0
22.9% APR (variable)
£25 cash back when you successfully apply for an HSBC Credit card. Spend or balance transfer over £100 within 60 days of opening the account to be eligible. Available to new customers only. Offer ends 13th February 2022. T&Cs apply
Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).
Check eligibility
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Name Product Purchases Balance transfers Annual/monthly fees Representative APR Incentive Link
M&S Bank Shopping Plus Credit Card
0% for 23 months reverting to 21.9%
0% for 23 months
(2.9% fee)
£0
21.9% APR (variable)
Earn 1 point for every £1 spent at Marks and Spencer's and 1 point for every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Check eligibility
HSBC Purchase Plus Credit Card Visa
0% for 22 months reverting to 22.9%
0% for 22 months
(2.9% fee)
£0
22.9% APR (variable)
£25 cash back when you successfully apply for an HSBC Credit card. Spend or balance transfer over £100 within 60 days of opening the account to be eligible. Available to new customers only. Offer ends 13th February 2022. T&Cs apply
Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).
Check eligibility
Santander All in One Credit Card
0% for 20 months reverting to 17.9%
0% for 26 months
(0% fee)
£3 per month
23.7% APR (variable)
0.5% cashback after £1 of monthly spend. Cashback paid monthly into card account. Maximum spend for cashback purposes is limited to credit limit.
Representative example: When you spend £1,200 at a purchase rate of 17.9% (variable) p.a. with a fee of £3 per month, your representative rate is 23.7% APR (variable).
Check eligibility
M&S Bank Rewards Offer Mastercard
0% for 12 months reverting to 19.9%
0% for 12 months
(2.9% fee)
£0
19.9% APR (variable)
Double points on spend in M&S for first 12 months (2 points per £1). Then earn 1 point for every £1 spent at Marks and Spencer's and 1 point for every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
Check eligibility
Tesco Bank Clubcard Plus Credit Card Mastercard
0% for 24 months reverting to 19.944%
21.814%
(3.99% fee)
£7.99 per month
37.7% APR (variable)
1 point per £4 spent (£4 minimum) in Tesco and 1 point per £8 spent (£8 minimum) outside Tesco, must have available credit to earn points. Card can also be used as a Clubcard to collect standard points at 1 point per £1 spent on shopping and 1 point per £2 spent on fuel. Points are converted to Tesco vouchers which can be used towards shopping or exchanged for Partner Rewards.
Representative example: When you spend £1,200 at a purchase rate of 19.944% (variable) p.a. with a fee of £7.99 per month, your representative rate is 37.7% APR (variable).
Barclaycard Platinum All-Rounder Visa
0% for 24 months reverting to 21.9%
0% for 22 months
(2.9% fee)
£0
21.9% APR (variable)
Up to 5 months free trial of Apple Music, Apple TV+, Apple News + and Apple Arcade.
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Ulster Bank Purchase & Balance Transfer Credit Card Mastercard
0% for 23 months reverting to 21.9%
0% for 23 months
(2.49% fee)
£0
21.9% APR (variable)
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Tesco Bank Purchases Card
0% for 23 months reverting to 20.94%
0% for 3 months
(2.99% fee)
£0
20.9% APR (variable)
1 point per £4 spent (£4 minimum) in Tesco and 1 point per £8 spent (£8 minimum) outside Tesco. Must have available credit to earn points. Points are converted to Tesco vouchers or can be exchanged for Partner rewards to receive money off a variety of restaurants, entertainment or Avios points.
Representative example: When you spend £1,200 at a purchase rate of 20.94% (variable) p.a., your representative rate is 20.9% APR (variable).
Sainsbury's Bank Dual 23 Month Offer Credit Card Mastercard
0% for 23 months reverting to 21.95%
0% for 23 months
(3% fee)
£0
21.9% APR (variable)
Earn 3 Nectar points per £1 spent in Sainsbury's and Argos. Earn 1 Nectar point for every £5 spent elsewhere. Earn 500 bonus points each time you spend £35 or more on Sainsbury's shopping with your credit card, up to ten times in your first 2 months, offer available for new customers.
Representative example: When you spend £1,200 at a purchase rate of 21.95% (variable) p.a., your representative rate is 21.9% APR (variable).
Royal Bank of Scotland Purchase & Balance Transfer Credit Card Mastercard
0% for 23 months reverting to 21.9%
0% for 23 months
(2.49% fee)
£0
21.9% APR (variable)
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
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Name Product Purchases Annual/monthly fees Initial credit limits Representative APR Incentive Link
M&S Bank Rewards Offer Mastercard
0% for 12 months reverting to 19.9%
£0
Min. limit £500, max. limit not specified.
19.9% APR (variable)
Double points on spend in M&S for first 12 months (2 points per £1). Then earn 1 point for every £1 spent at Marks and Spencer's and 1 point for every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
Check eligibility
M&S Bank Shopping Plus Credit Card
0% for 23 months reverting to 21.9%
£0
Min. limit £500, max. limit not specified.
21.9% APR (variable)
Earn 1 point for every £1 spent at Marks and Spencer's and 1 point for every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Check eligibility
M&S Bank Transfer Plus Offer Mastercard
0% for 3 months reverting to 21.9%
£0
Min. limit £500, max. limit not specified.
21.9% APR (variable)
Earn 1 point for every £1 spent at Marks and Spencer's and 1 point for every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Check eligibility
Santander All in One Credit Card
0% for 20 months reverting to 17.9%
£3 per month
Min. limit £500, max. limit not specified.
23.7% APR (variable)
0.5% cashback after £1 of monthly spend. Cashback paid monthly into card account. Maximum spend for cashback purposes is limited to credit limit.
Representative example: When you spend £1,200 at a purchase rate of 17.9% (variable) p.a. with a fee of £3 per month, your representative rate is 23.7% APR (variable).
Check eligibility
American Express Platinum Cashback Everyday Card
24.5%
£0
Min. limit £700, max. limit not specified.
24.5% APR (variable)
New Cardmember offer: Get 5% cashback on your purchases (up to £100) for the first 3 months of Cardmembership. Spend £0 to £10,000 and receive 0.5% cashback on all purchases. Spend over £10,000 and receive 1% cashback on purchases.
Representative example: When you spend £1,200 at a purchase rate of 24.5% (variable) p.a., your representative rate is 24.5% APR (variable).
Go to site
American Express Rewards Credit Card
24.5%
£0
Min. limit £500, max. limit not specified.
24.5% APR (variable)
As a new Cardmember, earn 10,000 Membership Rewards® points when you spend £2,000 in your first 3 months of Cardmembership. Earn 1 point for every £1 spent thereafter.
Representative example: When you spend £1,200 at a purchase rate of 24.5% (variable) p.a., your representative rate is 24.5% APR (variable).
Check eligibility
British Airways American Express® Credit Card
24.5%
£0
Min. limit £700, max. limit not specified.
24.5% APR (variable)
Earn 10,000 bonus Avios when you spend £1,000 in your first 3 months of Cardmembership. New Cardmembers Only. Earn 1 Avios for virtually every £1 spent. Spend £12,000 annually and get a travel companion voucher when redeeming Avios for a BA reward flight. Terms Apply
Representative example: When you spend £1,200 at a purchase rate of 24.5% (variable) p.a., your representative rate is 24.5% APR (variable).
Go to site
Royal Bank of Scotland Reward Credit Card Mastercard
21.9%
£24 per annum. Reward or Reward Black Current Account holders: £0 per annum
Min. limit £250, max. limit not specified.
26.8% APR (variable)
1% Rewards earned on supermarket spend and 0.25% at their petrol stations, at least 1-15% Rewards earned at MyRewards retailers and 0.25% everywhere else when shopping at home and abroad. 5 Rewards is £5 when redeemed. Rewards can be converted into money and transferred to a current account, exchanged for gift cards or tickets with some retailers doubling their value or converted into money and donated to one of the RBS Group chosen charities.
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a. with a fee of £24 per annum. Reward or Reward Black Current Account holders: £0 per annum, your representative rate is 26.8% APR (variable).
Check eligibility
NatWest Reward Credit Card Mastercard
21.9%
£24 per annum. Reward or Reward Black Current Account holders: £0 per annum
Min. limit £250, max. limit not specified.
26.8% APR (variable)
1% Rewards earned on supermarket spend and 0.25% at their petrol stations, at least 1-15% Rewards earned at MyRewards retailers and 0.25% everywhere else when shopping at home and abroad. 5 Rewards is £5 when redeemed. Rewards can be converted into money and transferred to a current account, exchanged for gift cards or tickets with some retailers doubling their value or converted into money and donated to one of the RBS Group chosen charities.
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a. with a fee of £24 per annum. Reward or Reward Black Current Account holders: £0 per annum, your representative rate is 26.8% APR (variable).
Check eligibility
American Express Platinum Cashback Card
24.5%
£25 per annum
Min. limit £700, max. limit not specified.
29.8% APR (variable)
As a new Cardmember, get 5% cashback on your purchases (up to £125) for the first 3 months of Cardmembership. Spend £0 to £10,000 and receive 0.75% cashback on all purchases. Spend over £10,000 and receive 1.25% cashback on purchases.
Representative example: When you spend £1,200 at a purchase rate of 24.5% (variable) p.a. with a fee of £25 per annum, your representative rate is 29.8% APR (variable).
Check eligibility
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Name Product Annual/monthly fees Initial credit limits Minimum income Representative APR Incentive Link
Bip Credit
£0
Min. limit £250, max. limit not specified.
Not specified
29.9%
Representative example: When you spend £1,200 at a purchase rate of 29.95% (variable) p.a., your representative rate is 29.9% APR (variable).
Check eligibility
HSBC Classic Credit Card
£0
Min. limit £250, max. limit £1,000.
£6800
29.9%
Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away.
Representative example: When you spend £1,000 at a purchase rate of 29.9% (variable) p.a., your representative rate is 29.9% APR (variable).
Check eligibility
Aqua Classic Credit Card
£0
Min. limit £250, max. limit £1,200.
Not specified
32.9%
Representative example: Assumed credit limit £1,200, representative 32.9% APR (variable), purchase rate 32.94% p.a. (variable).
Please note: you can’t have two Aqua accounts or open an Aqua account within 12 months of opening a Marbles, Fluid or Opus account, issued by New Day
Check eligibility
Aqua Classic Balance Transfer Card
£0
Min. limit £250, max. limit £1,200.
Not specified
34.9%
Representative example: Assumed credit limit £1,200, representative 34.9% APR (variable), purchase rate 34.95% p.a. (variable).
Please note: you can’t have two Aqua accounts or open an Aqua account within 12 months of opening a Marbles, Fluid or Opus account, issued by New Day
Check eligibility
Tesco Bank Foundation Card
£0
Min. limit £100, max. limit not specified.
£5000
27.5%
Collect 1 Tesco Clubcard point per £4 spent (£4 minimum) in Tesco and 1 Clubcard point per £8 spent (£8 minimum) outside Tesco in each purchase transaction.  Must have available credit to collect Clubcard points. Clubcard points are turned into Clubcard vouchers every 3 months or sooner using Faster Vouchers. Clubcard vouchers can be used in Tesco or with Clubcard Reward Partners to get even more value on dining out, hotel stays and travel.
Representative example: When you spend £1,200 at a purchase rate of 27.542% (variable) p.a., your representative rate is 27.5% APR (variable).
TSB Classic Credit Card Mastercard
£0
Min. limit £500, max. limit not specified.
Not specified
27.9%
Representative example: When you spend £1,200 at a purchase rate of 27.95% (variable) p.a., your representative rate is 27.9% APR (variable).
Vanquis Bank Chrome Credit Card
£0
Min. limit £250, max. limit £1,500.
Not specified
29.5%
Representative example: When you spend £250 at a purchase rate of 29.5% (variable) p.a., your representative rate is 29.5% APR (variable).
Vanquis Bank Aquis Visa
£0
Min. limit £250, max. limit £1,000.
Not specified
29.8%
You could get a credit limit increase after your 5th statement and further increases every 5 months, up to £4,000.
Representative example: When you spend £1,000 at a purchase rate of 29.84% (variable) p.a., your representative rate is 29.8% APR (variable).
Amazon Classic Mastercard
£0
Min. limit £500, max. limit not specified.
Not specified
29.9%
Be upgraded to the Amazon Platinum Mastercard if you make at least one transaction a month, make repayments on time and stay within credit limit in the first 12 months..
Representative example: When you spend £1,200 at a purchase rate of 29.95% (variable) p.a., your representative rate is 29.9% APR (variable).
Marbles Card
£0
Min. limit £250, max. limit £1,200.
Not specified
32.9%
You could get a credit limit increase after three months. Choose a monthly repayment date that suits you and change it up to twice a year.
Representative example: Assumed credit limit £1,200, representative 32.9% APR (variable), purchase rate 32.94% p.a. (variable).
Please note: you can’t have two Marbles accounts or open a Marbles account within 12 months of opening an Aqua, Fluid or Opus account, issued by New Day
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Name Product Purchases Annual/monthly fees Initial credit limits Representative APR Incentive Link
British Airways American Express® Credit Card
24.5%
£0
Min. limit £700, max. limit not specified.
24.5% APR (variable)
Earn 10,000 bonus Avios when you spend £1,000 in your first 3 months of Cardmembership. New Cardmembers Only. Earn 1 Avios for virtually every £1 spent. Spend £12,000 annually and get a travel companion voucher when redeeming Avios for a BA reward flight. Terms Apply
Representative example: When you spend £1,200 at a purchase rate of 24.5% (variable) p.a., your representative rate is 24.5% APR (variable).
Go to site
British Airways American Express® Premium Plus Card
24.5%
£250 per annum
Min. limit £700, max. limit not specified.
101.1% APR (variable)
Earn 40,000 bonus Avios when you spend £3,000 in your first 3 months of Cardmembership. New Cardmembers Only. Earn 3 Avios for per £1 spent directly with BA and 1.5 Avios per £1 spent elsewhere. Terms Apply

Representative example: When you spend £1,200 at a purchase rate of 24.5% (variable) p.a. with a fee of £250 per annum, your representative rate is 101.1% APR (variable).
Check eligibility
Virgin Money Virgin Atlantic Reward Credit Card
22.9%
£0
Min. limit not specified, max. limit not specified.
22.9% APR (variable)
Earn 0.75 Flying Club miles for every £1 spend and 1.5.miles for every £1 spend with Virgin Atlantic or Virgin Holidays. Spend £20K a year on your card and choose an extra benefit - an upgrade to Premium, or a Companion ticket.
Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).
Virgin Money Virgin Atlantic Reward Plus Credit Card
22.9%
£160 per annum
Min. limit not specified, max. limit not specified.
63.9% APR (variable)
Earn 15,000 bonus miles with your first card purchase made within 90 days of account opening. Earn 1.5 Flying Club miles for every £1 spend and 3 miles for every £1 spend with Virgin Atlantic and Virgin Holidays. Spend £10K a year on your card and choose an extra benefit - an upgrade to Premium, or a Companion ticket.
Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a. with a fee of £160 per annum, your representative rate is 63.9% APR (variable).
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How does minimum payment work with 0% offers?

Some credit cards offer 0% interest on purchases and/or balance transfers for an introductory period, which usually range from 12-36 months. Although it means you get a break from interest, it does not mean you get a break from making monthly minimum payments.

It’s important to note that making your minimum monthly payment won’t necessarily clear your total debt within your interest-free period.

Instead, you should calculate exactly how much you need to pay each month to repay the entire balance by the time the interest-free period ends. Find your goal monthly repayment by dividing the size of your debt by the number of months in the balance transfer offer.

The table below shows what percentage you should pay off each month to fully clear your debt during the interest-free balance transfer promotional period. We’ve also shown how much this would be for a £2,000 debt. For this example, we’re assuming no new purchases are being made with the card.

Duration% of total to repay each month to clear debtWhat that would equal per month on a £2,000 debt
6 months16.67%£333.33
9 months11.11%£222.22
12 months8.33%£166.66
14 months7.14%£142.85
16 months6.25%£125.00
18 months5.56%£111.11
20 months5.00%£100.00
24 months4.17%£83.33

If you miss a payment, you could incur penalty fees and could also have the 0% offer withdrawn or the time period reduced.

What happens if I miss a minimum payment?

If you forget to pay or can’t afford to pay your minimum payment, you will incur fees and this could impact your credit report. This, in turn, could affect your ability to attain credit in the future.

If you accidentally missed the payment date, make a payment immediately. However, if you’re struggling to pay, contact your provider as soon as possible as it may be able to help.

You could also risk having your interest rate increased or perhaps the introductory 0% period on your card shortened or withdrawn altogether.

All you need to know about debt

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