What is Minimum Payment?
The smallest amount you must pay on your credit card each month to avoid penalties. When stoozing, always set up a Direct Debit for at least the minimum payment. Missing it can void your 0% deal and revert the balance to the standard APR of 23-25%.
The minimum payment is the least a credit card holder must pay each month to keep the account in good standing. UK cards typically set it as the greater of a small percentage of the balance (around 1-2.5%, sometimes plus interest and fees) or a fixed floor of a few pounds. The exact formula is in the card agreement.
It matters enormously to stoozing because 0% promotional deals still require the minimum every month, and a single missed payment commonly voids the promotion — the balance then reverts to the card's standard APR, typically in the mid-20s percent, which wipes out the point of the exercise. A Direct Debit set to collect at least the minimum is the standard safeguard used by stoozers.
Minimum payments are designed to keep an account current, not to clear debt: on their own they reduce a balance very slowly. FCA persistent-debt rules mean cardholders who pay only the minimum for an extended period receive prompts from their lender to pay more.