Managing Debt: Avoid Minimum Payments

Once you have found direction as we discussed in our last blog, be sure that the plan you have set for yourself is achievable, and within a good time frame. Don’t trick yourself into an “easy way out” that may allow you to have more funds for spending elsewhere, but won’t get you very far when it comes to managing your debts. What is this “easy way out” you ask? Minimum payments.

Take a good look at your credit card statement. The Credit Card Act of 2009 requires credit card issuers to place simple payment information on your statements. Here you should find a minimum payment disclosure that will give you an idea of how long it will actually take to pay off your credit card debt. Chances are if you are on the higher end of a balance it will be a while, even decades in some instances. It is best to pay more than the minimum as much as possible and also refrain from using the credit card any further. Since you are trying to lower debts, it’s not in your best interest to make payments and turn around and charge the card again. Another factor to consider is the interest fees added to your balance. This is why it is important to pay as much as possible as the interest added on to your balance can make it seem like an impossible goal with no finish line at the end.

Don’t over stress your finances either. If in your current situation you can only afford a minimum payment you want to be sure to do this at the very least. You definitely want to avoid any late payments which can be a bigger hindrance on your credit. Only you know your finances! Always look in other areas where you can cut back and invest those savings into lowering and managing your debt.



MSI Credit Solutions provides superior credit restoration and comprehensive consulting services that are reliable and affordable. For any questions or to schedule a free credit consultation, contact us at (866) 217-9841.

 *The information in this article has been provided strictly for educational purposes.


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