Credit card companies' practice of providing you with a minimum payment on your monthly bill likely influences payments to the companies' advantage.This influence occurs,at least in part,due to

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The practice of providing a minimum payment on the monthly bill is an example of anchoring and adjustment heuristic. The minimum payment acts as an anchor or reference point for the customer, who is then likely to make a payment close to or above that amount, rather than paying off the entire balance. This benefits the credit card company as it results in the customer paying interest on the remaining balance, thereby increasing the company's profits.

Credit Card Companies' Practice of Providing You with a Minimum