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Sometimes late fees can take a chunk out of your monthly minimum payment, Moore says. "For example, your minimum payment on a credit card with a $1,000 balance might be $40. If you pay it late, a $25 late fee may be applied. The problem here is if you paid $40 and $25 is applied to the late fee, only $15 of the $40 payment is applied to the principle and interest."
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