# What is a minimum payment?

If there’s a balance on your credit card, you need to make at least a minimum payment each month.

## How paying more could cut your borrowing costs

### Repayment calculator

Use the calculator to get an idea of how your monthly payments could change the repayment time, amount owed and interest applied.

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## We’re here if you need support

If you’re ever finding it difficult to make credit card payments, please let us know so we can help.

Help with money worries

• The calculation might vary depending on who your lender is, but at Halifax your minimum payment is either 2.5% of your balance plus any interest and fees, or £5 – whichever is higher.

Below are two simple examples, based on a credit card with a balance at 0% interest for 12 months:

Example one
Imagine your balance is £2,000. 2.5% of this is £50, so your minimum payment is £50.

Example two
Imagine your balance is £199. 2.5% of this is just £4.98, so your minimum payment is £5.

Even if a 0% introductory or promotional interest rate applies to your balance, you must make the minimum payment each month, by the due date shown on your statement or online account.

• To help you to stay on track, you could set up a Direct Debit to make payments to your credit card account automatically each month.

If a Direct Debit isn’t taken for 37 months, it will become inactive, and your bank or building society will remove the details from their systems. If this happens, you’ll need to set up a new one.

If you can pay more than your minimum payment each month in addition to your Direct Debit, or want to pay another way, there are a few payment options available, including online transfers, debit card or cheque payments.

Ways to pay your credit card

### A summary on minimum payments

If there’s a balance on your credit card, you need to make at least a minimum payment each month.

• It’s a good idea to pay more than the minimum to reduce your balance and borrowing costs. At Halifax, the minimum monthly payment is 2.5% of your balance, or £5 – whichever is higher.
• If you consistently pay just the minimum, you could fall into persistent debt.
• Most lenders offer support with money worries if you’re ever finding it difficult to make payments.