Credit cards can be a helpful financial resource to have. They can help you make needed purchases that may be temporarily outside your budget or even help in emergencies such as unforeseen home or car repairs. However, if you are not careful, credit card balances can quickly become a financial burden.
It is recommended that you pay off your entire credit card balance every month; however, your financial circumstances may change, making it impossible to make full payment. It may be tempting to simply make the minimum monthly payment in this situation. Your minimum monthly payment is the lowest amount of money that your bank or credit card provider will accept from you each month. This amount is usually either a fixed rate or determined by how large a balance is on the account. While making the minimum payment will keep your account and credit score in good standing, this strategy will ultimately cost you more.
Credit cards often come with higher interest rates than other types of loans. While paying your monthly minimum fee may be affordable now, it will not do much to decrease your total balance meaning that it will take longer to pay off. The added interest payments for each additional month that it takes to pay off your balance will mean that you end up paying more money overall. Even paying a little more than your monthly minimum each month can go a long way in cutting down the time it will take you to pay off your credit card, and even more importantly, it will save you money.
There is hope if you find yourself in a position where you can only make minimum monthly payments. Settling your debt with your credit card company could be a way to relieve your financial burden and stress all at once.
What is Debt Settlement?
Debt happens to all of us, but if you can only make your minimum monthly credit card payments, it might be time to try and negotiate down your total debt with your credit card company. Luckily, the ACCS team of experienced debt specialists is here to help. They can handle the negotiations for you by working with your credit card company to agree on a one-time payment that is lower than your current balance. Better yet, it’s a payment you can afford. Let our team of experts help you get relief. Your future self will thank you! Request your Custom Debt Relief Plan today!