A "Minimum Payment" is the smallest amount of money that a borrower must pay on a loan or credit card bill each month. This payment is usually a percentage of the total balance owed or a fixed dollar amount, whichever is higher. Making only the minimum payment can lead to longer repayment periods and increased interest costs. Paying the minimum amount helps borrowers avoid late fees and keeps their accounts in good standing. However, it is important to note that consistently paying only the minimum can result in accumulating debt over time, especially with high-interest rates associated with credit cards like those from Visa or Mastercard.