Suppose you have more than two credit cards, then because of your financial problems forced always pay some credit card with a minimum amount? If the answer is yes, then you’re having a major problem.
Why? Due to always make the minimum payments, your credit card interest will continue to run on the next bill. Finally, the credit card debt seemed endless. Then, how to avoid it in order not to happen to you.
What is the minimum payment it?
By definition, the minimum payment is the minimum amount you must pay no later than at the time of maturity of the bill.
Actually, the purpose of the minimum payment is to ensure that your credit card account free of problems, and show that you comply with the terms and conditions of a credit card.
How much should be paid?
Typically, the minimum payment is permitted by the credit card issuer for 10 percent of the total existing bill.
Sometimes even this minimum payment of a specific amount, and will be added if you have a mortgage remains in your credit card bills.
Why become a problem?
The minimum payment was indeed granted by banks to facilitate customers. You just do the minimum payments on time to avoid late fees, then you will still be able to use a credit card owned facilities.
However, that should be remembered is the minimum payment is not the sum total bill that you must pay. Since you will be charged interest on the value of remaining bills were not paid at maturity.
In the existing provisions, interest will be charged if the cardholder fails to pay in full before the due date on the bill of the current month.
Then, the interest of the unpaid amount is added to the amount of debt the bill further. This is where the problem occurs, it means that you will pay the ongoing interest of the remaining bills.
Each new spending will be included in the total bill, and began to be charged interest. Therefore, if you have a larger bill, then the minimum payment is an expensive way to use your credit card.
What to do?
When you are stuck in credit card minimum payment, your financial means is being unwell, and was forced to continue paying this minimum. The only way is to stop the use of your credit card.
You can also ask your credit card issuer institution to replace the payment deadlines. Usually, the due date falls in the middle of the month. Request a change to the end of each month. So that, so receives a salary, you can instantly to pay off credit card debt.
If you can not also, then the last moments that you do is ask lightweight and affordable settlement on the part of the issuing bank. This is what is known as the “debt rescheduling” or rescheduling debt collectible by installments.