Is it legal for the minimum payment on a credit card to be less than the monthly interest?
The typical minimum repayment on a credit card is 5% of the total balance. For this to be less than the interest payment you must have an annual interest rate over 60%. There is nothing illegal in this, but this is an extremely high rate. Unless you have a very bad credit rating you should easily be able to get a card with a rate around 20% – 30%, and you might be able to get one thats even better. Of course, the best thing to do is to pay the bill in full each month, then it doesn’t matter what the rate is.
