Separate minimum payment from full payment
A minimum payment may keep an account from becoming overdue under its terms, but it is not the same as clearing the balance or avoiding interest. Read the statement, the purchase balance and the due date. Rules differ by provider and country.
Understand the grace period
For a US card with a purchase grace period, and when you are not carrying a balance, paying the statement balance in full by the due date can avoid interest on new purchases. Cash advances and other transactions may work differently. Once a balance is carried, eligibility to regain a grace period depends on the agreement.
An illustrative contrast
If a £1,000 debt remains outstanding at a hypothetical simple annual rate of 24%, a rough year’s interest calculation is £240 before payments and fees. Actual cards commonly calculate charges daily and payments change the balance. This illustration is not a quote for a real card.
If payment is difficult
Do not use a generic rule as a reason to leave essentials unpaid. Contact the provider early, understand the terms and seek appropriate local debt support. This article explains the mechanics; it does not choose a repayment strategy for your circumstances.