Minimum Payment on Credit Card Balance

[Wilma]

Wasn't there a law passed that was supposed to eliminate rediculously small minimum payments on credit card balances?

[W. Gray]

Wilma, I do not believe the feds prevented the credit card companies from having a low minimum monthly payment due, but they do have to explain on the bill what the ramifications are of paying that low minimum monthly payment.

If one charges, say, $795 on his or her credit card bill, the minimum payment due from one actual case is $16 per month.

The billing explains that if only the minimum payment due is paid; it will take a total of 7 years and that $795 charge will cost a total of $1,236 with interest.

The same bill also states that if one chooses to make a higher monthly payment of $27 per month, the payoff time is only 3 years, and the total cost is $976 saving the customer $260 in interest.

[Wilma]

That is in small print of course.  I will see if I can find it.  Thanks.