Citi how is minimum payment calculated

The below examples provide an illustration on the impact of the revision to your minimum monthly repayment. Note: The below are for illustration purposes and your actual minimum monthly repayment amount will vary according to your transactions and balances. If you have difficulty in making repayments, you should contact us the earliest possible to discuss repayment alternatives.

You may contact Citibank Berhad at:. Alternatively, you may seek the services of Agensi Kaunseling dan Pengurusan Kredit AKPK , an agency established by Bank Negara Malaysia to provide complimentary services on money management, credit counselling and debt restructuring for individuals.

Overdue payments or over-the-limit balances can change the math. Billing cycles often don't start at the beginning of the month. Make sure you know when your billing cycle ends and begins before estimating. Your statement balance will differ depending on whether it begins on, say, the 11th of each month versus the 13th.

Why isn't your minimum smaller? Federal guidance directs issuers to avoid "negative amortization. That's because if you paid the minimum on it, your payment would be lower than your interest charges. Your balance would continue to grow even if you didn't make new purchases. With today's minimums, by contrast, your balances will generally go down each month — though only slightly — assuming you don't make new purchases.

In the pamphlet you received in the mail when you got the card. Online, when you log into your account and view your card details. You can find out more about minimum payments by reading your credit card statement. Reviewing that warning might motivate you to pay off your debt faster. Paying just the minimum can feel like saving money because it means a much smaller hit to your checking account than paying the full balance would. Try to pay double the minimum payment, if you can afford it.

With some interest rate relief, your balance won't grow as quickly. Sometimes, an issuer will use a combination of these calculations to determine your minimum payment. As an example, a cardmember agreement might state:.

Every issuer's terms and base minimum payments are different, so it's important to read your cardmember agreement to understand how yours is calculated. In general, if your minimum payment keeps rising and it becomes more difficult to pay, you should consider it a warning sign to reevaluate your finances. Usually, a minimum payment is growing for one or possibly some combination of the following reasons:. If you continue to miss payments, your minimum will continue to rise.

Paying the minimum on your credit card will delay debt repayment. In that kind of situation, it's more important to prioritize essentials like groceries, utilities and the roof over your head. And meeting at least the minimum payment still goes a long way toward preserving access to credit and maintaining an account in good standing. Here are a few strategies for keeping your minimum payment under control:.

With a predictable budget, you can also automate payments. Keep a budget and track your spending: This will prevent you from charging more than you can afford to pay off in one month.