Common use of MINIMUM MONTHLY PAYMENT Clause in Contracts

MINIMUM MONTHLY PAYMENT. We will send you a statement every month showing your Previous Balances of purchases and cash advances, the current transactions on your account, the remaining credit available under your Credit Line, the New Balances of purchases and cash advances, the Total New Balance, the Interest Charge due to date, and the Minimum Payment required. Every month you must pay at least the minimum Payment within 25 days of your statement closing date. You may, of course, pay more frequently, pay more than the Minimum Payment, or pay the Total New Balance in full, and you will reduce the Interest Charge by doing so. The Minimum Payment will be either 2.5% of your Total New Balance, or $25.00 whichever is greater. In addition, at any time your Total New Balance exceeds your Credit Line, you must immediately pay the excess upon our demand. Payments and credits will be applied first to accrued Interest Charges on the Cash Advances new balance; next, to the accrued INTEREST CHARGES on the Purchases new balance; next, to any late charges; next, to any annual fee; next, to over-limit charges and other extraordinary fees or charges imposed on your account; next, to reduce the balance for Cash Advances; and finally, to reduce the balance for Purchases. Payment example: A statement balance of $2305.20 x 2.5% = $57.63. Rounding up to the nearest $1, the payment would be $58. If there is a past due amount of $50, the total payment would be $108. However, any payment equal to or greater than the Previous Balance of Purchases will be applied first to that balance and any Interest Charge thereon so as to avoid continuing accrual of Interest Charge on that amount.