minimum-payment

Vocabulary Word

Definition

'Minimum payment' is the smallest amount you can pay on a credit card bill or loan without facing penalties. It's a way to stay in good standing, even if you can't pay the whole amount right now.

Examples in Different Contexts

For loans, the 'minimum payment' might refer to the lowest payment allowed under the loan's terms to avoid penalties. A loan officer might explain, 'It's important to at least make the minimum payment on your loan to avoid late fees and credit score damage.'

Practice Scenarios

Accounting

Scenario:

Our cash flow situation needs immediate attention. It's paramount we prioritize where funds are directed.

Response:

Maintaining our minimum payments is a good first step to securing our financial health.

Marketing

Scenario:

We need to make our product seem accessible. A promotional strategy emphasizing payment plans might help.

Response:

I agree, emphasizing low minimum payments could attract customers with budget limitations.