How a Credit Card Charges You

A credit card can cost €0 or a lot. You choose each month.

Pay the bill in full: €0 interest.

Pay only the minimum: interest builds on what you still owe.

A bill of €1,000, for example, left unpaid for a year at 20%: about €200 interest.

A low minimum can keep the debt alive for a long time.

Do you know which way your card is set up?

Education, not investment advice.

Read the sheet as text

Title: How a Credit Card Charges You
Highlight: Credit Card
Subtitle: Pay in full and interest is €0.
Frame title: A €1,000 Card Bill, for Example

Part 1: Pay in Full. The bill has a due date and an amount. Pay all of it. €0 (interest).
Part 2: Minimum Only. Interest builds on what you still owe. €200 (about, after a year at 20%).

Verdict: A card lets you pay now and settle later. Settling late costs interest.
Note: Terms differ by card. A small minimum can keep a debt alive for a long time.

Footer: redstartjournal.com · Education, not investment advice · CC BY-NC-ND 4.0

Sources (2)

Credit cardBanca d'Italia (L'economia per tutti), undated page: paying the monthly spend in full has no revolving loan; paying in instalments is an extra loan with interest on the amount still owed, often higher than other forms of credit. Checked 2026-10-29.
Consumer credit made easyBanca d'Italia, undated guide: a low minimum instalment can stretch the length of a debt. Checked 2026-10-29.