Making Only the Minimum Monthly Payments?
Minimum Monthly Payments May Not Be the Best Bet
So you’re deep in credit card debt, but that’s okay because you can still make your minimum monthly payment, right? Wrong. Making your minimum monthly payment isn’t going to do much good to get you out of credit card debt. In fact, depending on how much debt you’re in, making only your minimum monthly payments may extend your debt for decades, causing you to spend thousands more than what you originally charged. Is that really what you want to do?
Double Your Payment
If you’ve only been making the minimum monthly payments on your credit cards, you’re going to want to double what you’ve been paying each month. Even if that means cutting back on those lattes from Starbucks or the occasional weekend movie, you’re going to need to use that cash to get yourself out of debt.
Minimum Monthly Payments Are Great for Them, Bad for You
When you make minimum monthly payments, it’s great for your credit card company, so sure they’re probably going to even up your credit limit since you’ve been paying so well on time each month. That doesn’t mean they’re doing you any favors. The more you spend and the less you pay off each month, the more money they make off of you in interest.
Just remember, try to pay off as much as you can each month and you’ll be well on your way to getting out of credit card debt.