New Delhi, June 17 -- In the country, credit cards have now become indispensable tools for managing day to day expenses and meeting funding obligations during emergencies. Still, a common belief persists that paying just the minimum amount due each month is sufficient for maintaining a healthy credit score and a strong credit profile. Do note, this fact is partially correct and comes with a set of serious challenges.

The minimum payment amount is nothing but the smallest payment your credit card issuer requires for the billing cycle. It is generally around 5% of your total outstanding balance. It helps in helping borrowers avoid late fees but paying only the minimum can still lead to high interest charges over time.

Paying the minimum d...