Credit Card Total Due Amount

The credit card statement highlights the credit card total due amount in credit card along with the minimum due on a monthly basis. While the minimum due is the minimum amount to be paid for the maintenance of your credit card, the credit card total due amount is the total amount that is due to be paid as of the date on which the credit card statement or bill is generated. This is inclusive of the opening balance i.e. the amount with which the account has been opened, any new buys that the credit card user might have made using the card and fees or finance charges that might be added. The credit card total due amount excludes the amount that has already been paid by the customer. 

By paying the credit card total due amount, the customer avoids the interest charged on the outstanding balance when they only pay the minimum amount due. This means that the credit card user is able to enjoy the interest-free credit period. The credit card total due amount keeps increasing as the customer avoids paying the total outstanding balance. Paying the credit card total due amount lets the customer swipe the card as per their requirements as they escape the reduction in credit card limit too.

Total Due in Credit Card

Given below is a scenario highlighting the total due in credit card paid off by the customer. Assume that a credit card user makes a purchase of Rs. 10000 on August 2, 2020. The credit card statement is generated on August 10, 2020 with the minimum due in credit card being Rs. 500 ( 5 percent of total due in credit card). The credit card total due amount is Rs. 10000 and the due date for the payment is August 30, 2020. 

Therefore, if the credit card total due amount is paid off by August 20, 2020 itself, given that the next statement will be generated on September 10, 2020, the transaction between August 10 and September 10 stands nil. The interest on the purchase will be levied from August 10 to August 30 i.e. 20 days. The next statement will not include any additional interest charges. 

Credit Card Total Due vs. Minimum Due

Total Due

Minimum Due

Total Due in Credit Card is the total expenditure incurred from the card during a particular billing period

Minimum Due in Credit Card is a certain and generally small percentage of the total amount due that constitutes the minimum amount to be paid for a billing period

When the credit card user pays the total due in credit card, they do not need to pay an additional or extra charge. 

When the credit card user pays the minimum due in credit card, they would need to pay the interest on the outstanding balance amount.

On the non payment of total due in credit card, the minimum due can be paid and the outstanding balance can be paid off later.

On the non payment of minimum due in credit card, the user might be charged with a late payment fee depending on outstanding balance.

 

Conclusion

Any card holder should be familiar and understand the difference between the two options provided at the end of a billing cycle in the credit card statement generated. As mentioned above, they can either pay the credit card total due amount i.e. the entire outstanding balance at the same time or they can pay up the minimum due in credit card. This means that they can pay back a small percentage of the total amount due and pay back the remaining balance later. In an ideal scenario, the card holder should look towards paying the credit card total due amount at once to avoid interest charges in the next credit card bill.