Let's use Finder's credit card calculator and a simple example.
In 6 months your unpaid balance has cost you an extra $106. And that's assuming you haven't continued spending on the card and adding to your balance.
Paying off your credit card in full is the best idea for most people. You avoid the cost of interest charges, build good credit history and you can take advantage of your card's interest-free days.
If you have a low rate credit card and a small balance, taking a few months to pay the closing balance won't hurt too much.
But if you have a fancy credit card that earns you points and has a purchase rate around 20%, letting a balance go unpaid is going to get very expensive.
If you can't pay off your closing balance that's OK. As long as you pay the monthly minimum (which is listed in your credit card statement) you'll be fine.
You just need to be aware of how much interest you're paying. And it's a really good idea to make a plan to repay the balance. Just making the minimum payment each month will make even a small debt stretch out for months or years.
With a credit card you're not limited to repaying either the entire closing balance or the minimum. You can pay some of the balance off each month.
Making part payments shrinks your closing balance, lowers your overall interest charges and helps you get the balance paid off.
If you know you can't repay your card balance in full each month then it's a good idea to look for either:
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