Why are minimum payments so low, and get lower?

Have you noticed that the minimum payment on your statements gets lower and lower over time? If you pay less each month then you’ll probably charge more. That’s what they are counting on. Banks want you to have no worries about carrying a larger balance. Making the minimum monthly payment is what they want to be your only concern. If the time and the total amount it would take you to pay off the balance of your credit card was printed on the front of your statement each month, would you pay more than the minimum balance due?

There are 90 million Americans who don’t pay off their balances every month. Banks are making more money in late fees, over-the-limit fees and return check fees than they are from the interest payments. How? For several reasons. Some companies will go so far as to set your payment date on a Sunday or a holiday. Hoping that you will forget to send it in.