Banks give you the option of letting you pay the minimum amount due in case you are not able to pay the full amount due. So the rest of the amount that is due is carried on to the next months bank statement, which will have to be paid back along with interest. But if the cardholder fails to pay even the minimum amount due, then he/she would have to make a late payment fee. When you are paying the minimum amount due, you are paying only 5% of your total amount due.
But resorting to paying the minimum amount due every month is not advisable. This is because the interest rates will pile up as you keep postponing to pay the full amount due. This will eventually lead to a debt trap. To avoid this scenario, it’s always better to pay the full amount due as you wouldn’t be burdened with high interest rates. You use credit cards to lend you small loans when you need them and then pay back to the bank. If you keep failing to pay the amount in full, the interest rates will get too high. Falling into a debt will bring down your credit score, which will eventually not get you any further loan approvals. So there are many complications when it comes to not paying your amounts in full. Are you looking for a credit card? Check your eligibility here.
Additional Reading: Why Paying Just the Minimum Amount Due On Your Credit Card is Not a Good Idea