Term
Minimum payment
The smallest amount you can pay on a card without falling into default. In Mexico Banxico sets the formula — the greater of 1.5% of what you owe plus the period's interest with its IVA, or 1.25% of your limit — so each minimum payment chips at least something off the principal.
In pesos: On a $10,000 MXN balance at 45% the minimum is $585: $435 of interest and its IVA, and $150 that actually lowers the debt.
Where to go deeper
4/4 6 min Read Your first credit card (and how not to wreck yourself) What the CAT really is, why the minimum payment is a trap, how the interest starts running, and what a credit history buys you later.More terms on the same topic
Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.