How to Get Rid of Credit Card Debt: Minimum Payments Keep You in Debt
In this article we will discuss the factors that show you how to get rid of your credit card debt. We’d like to discuss the topic of a minimum payment and how it can cause you to borrow more than you want. I assume you are reading this article because you want to know how to get out of credit card debt and get out of it fast.
The government has made provisions for you to get rid of credit card debt by allowing you to erase your past debts, if you have more than $10,000 of unsecured balances. For those with less than 10K, we’ll talk about structuring your payments with your creditors so you can get rid of your credit card debt for good.
Minimum payments: why you are in debt for a long time if you pay them. The minimum payments are designed to lull you into small payments that will equal a large stream of debt if you’re not careful.
When someone charges a credit card, they are allowed to make a minimum payment of 2% each month. Creditors keep you from getting rid of credit card debt by structuring a payment plan that allows you to overspend. This overspending becomes a habit because when you charge your card you don’t get a bill for it until at least 30 days later, and then the payment is so small that you don’t realize how big your debt is until that it’s too late.
The truth is that it is never too late, but you must increase your minimum payment each month or you could be in your situation for a long time with no way out. It is important that when you can see the light at the end of the tunnel, that you begin to double the number of payments you make to your creditor each month. This will reduce the amount of interest and other fees charged to you.
How can you get rid of credit card debt if you have more than one card? If you can’t make a balance transfer to a credit card with the lowest interest rate, it’s best to call one or both of your creditors and ask if they can put you on a payment schedule for at least 3 months. . After this you can call them again and see if you can re-qualify to get into this payment plan with them. If you explain your willingness to get rid of your credit card debt and pay them off, they’ll be happy to oblige.