Minimum Spend & Forfeited Balances
What it looks like: "A monthly minimum spend of $X applies. Unused balance does not carry over."
The Trap
- You pay $30/month minimum but only use $15 worth of service. You waste $15 every month — 50% of your payment.
- Unused credits or prepaid balances evaporate at the end of each billing cycle. Use it or lose it.
- Accumulation never happens. You start from zero every cycle.
- For prepaid credit systems, cost-per-unit is much higher than advertised because expiring credits inflate effective pricing.
The Cost Table
| Your Usage | Minimum Spend | You Pay | Wasted |
|---|---|---|---|
| $15 | $30 | $30 | $15 (50%) |
| $0 | $30 | $30 | $30 (100%) |
What to Search For
minimum + spend/fee, unused + forfeit/lapse, use it or lose it, carry over
Your Action Plan
- Calculate your typical monthly usage. If below minimum, the minimum IS the real price.
- "Unused balance does not carry over" = treat the minimum as the real price.
- For prepaid credits: calculate cost-per-unit including expired credits. Effective cost is higher.
- Set a reminder to use the minimum amount each cycle.