Student credit cards Learning the basics
In a perfect world, all purchases made on a credit card would be paid in full each month. That would incur no interest payments. But by making only the minimum payment, most of that bill goes toward interest and not the balance. By regularly paying only the minimum payments each month and continuing to make purchases on those credit cards, a consumer can easily get stuck in a cycle of debt. Credit cards are a very practical and convenient resource, but should not be used to pay for unnecessary things that push consumers beyond their means.