What "minimum payment" means in finance

A minimum payment is the lowest amount of money that a borrower is required to pay towards their outstanding balance on a loan or credit card, usually on a monthly basis. This payment is usually a percentage of the outstanding balance or a fixed amount, and it is designed to keep the borrower in good standing with the lender or credit card company. While making only the minimum payment may keep the account in good standing, it often results in the borrower paying more interest over time and taking longer to pay off the debt.