The minimum payment loop
5 PM Money Room check-in.
Minimum payments can be useful, but they can also keep a debt moving slowly when interest is doing a lot of the work behind the scenes.
Tonight is not about judging the minimum payment. Sometimes it is exactly what fits a season. Tonight is about understanding it.
Here is the question:
Do you know what part of your payment is lowering the balance and what part is going to interest?
If you do not know yet, that is a great place to start.
Today’s tiny action is to open one statement and look for three things: balance, interest rate, and minimum payment. That is it.
Comment with the word “statement” if you are going to look at one this week.
Keep learning here:
https://www.risingandthriving.com/post/minimum-payment-trap