Debt: Dont Pay Your Minimum Balance

Almost all Americans carry credit card debt. Actually, over 40% of US families spend more than they earn. If you're like most of us, you try not to think about how much money you owe and what that debt is really costing you. If you did, you might not sleep too well. However, by not fully understanding your current financial situation you are only prolonging the problem. In order to rid yourself of unsecured debt, you need to face the uncomfortable and often painful fact: it is very possible that your current debts may take you 30 years to pay off.

That can't be possible you say! I only owe $6,000. This should be paid off a couple of years. My credit card company would not do something so unethical to me, would they?

As a matter a fact, they would. In fact, if you took 30 years to repay your debts, you are an ideal credit card customer. It's important to realize that the credit card companies only allow you to make minimum payments because it benefits them. This is not a good thing for the credit card holder. They do not do this out of generosity; this is how they make money.

By paying only the minimum monthly payment each month, you are virtually guaranteeing that you will be a customer for life. If you are genuinely concerned about your financial wellbeing, you should be adamant about paying more than only the minimum balance on your credit cards each month. You must remain cognizant of the fact that if you can't afford to pay more than the minimum balance on your card each month, you can't afford whatever it is that you are buying.

When making a credit card payment, your funds are separated into two parts; interest and principal. Traditionally, when you only make minimum payments, most of it goes towards interest that is paid to the credit card company, which is why it takes so long to pay off your debts. Would you pay $10,000 for an item that is priced at $5,000? If you purchase that item on a credit card that is exactly what you're doing. If your credit card has an 23% interest rate and you only pay the minimum payment each month you will never get ahead!

Alan Barnes
IAPDA Certified Debt Arbitrator
President and CEO of Debt Regret
http://www.debtregret.com

---

Should You Join a CCCS - Consumer Credit Counseling Service for Debt Relief and Financial Freedom?

Do You Need to Join a CCCS - Consumer Credit... Read More

Debt Relief with this Simple Formula

Is there a way to get out of debt without... Read More

What is Debt Settlement?

Debt settlement is the process of negotiating with your creditors... Read More

New Bankruptcy Law Makes it Harder to Stop Foreclosure

On October 17, 2005 President Bush's sweeping bankruptcy reform law... Read More

Debt: Dont Pay Your Minimum Balance

Almost all Americans carry credit card debt. Actually, over 40%... Read More

Drowning in Debt? Tips and Tricks for Getting Out of Hot Water with Creditors

Do you, like millions of other Americans, feel like you're... Read More

Help to Get Out of Debt

Debt Help is the stepping stone to debt elimination and... Read More

How to Reduce Your Debt in 5 Easy Steps

If you have incurred substantial personal debt, consider these options:... Read More

Debt Collectors: Men or Mice?

Who are these people anyway? They viciously harass you and... Read More

UK Debt When Moving Abroad

The idea of moving abroad to escape debt seems to... Read More

Take Careful Consideration Before Filing Bankruptcy

Filing bankruptcy is not fun! It is a last resort... Read More

Think for a Change

I'm not sure where it originated, but I've heard it... Read More

New Bankruptcy Law Will Not Protect You from Identity Theft

Recently passed by Congress with overwhelming support, the oddly-named Bankruptcy... Read More

Secrets to Why Debt Reduction is So Vital for Your Financial Health

Living with debt is never a good idea if you... Read More

Debt Settlement -- Why the Critics Are Wrong

After October 17, 2005, a lot of people are going... Read More

Deal with All Your Debts with Care!

Lots of people take a large ammount of loans and... Read More

Bankruptcy Reform: Designed to Protect Big Business

Who will benefit from the new bankruptcy reform laws? The... Read More

Bankruptcy, Is It A Way Out

Negotiations with creditors have failed. Repossession is imminent and foreclosure... Read More

How to Avoid Bankruptcy

Bankruptcy is a legal way to offer folks with high... Read More

5 Options Toward Debt Relief

If you are in debt, well over your head in... Read More

Learn How to Get out of Debt

Debt is becoming number one problem in the United States... Read More

Repair Bad Credit Yourself

In March 2005, the U.S. financial services industry succeeded in... Read More

Credit Card Debt & the Unfairness of the Universal Default Clause

Let's look at a real world example: A woman purchased... Read More

Debt Settlement

What is debt settlement?Debt Settlement is a process to settle... Read More

The Bankruptcy Code Acknowledges the Validity of the Homestead Exemption

Many times the subject of bankruptcy seems baffling in its... Read More

What the Mail on Sunday Said

Anyone considering Bankruptcy may have experienced fear after reading an... Read More

Debt Free and Carefree

Are you still clearing a mountain of debt amassed last... Read More

IVA Information

If you're thinking about an IVA, it is essential to... Read More

Debt Elimination Is The Key to Financial Freedom

If you want financial freedom, the first thing that you... Read More

The Debt Free Lifestyle

Many people have been taught that you cannot get ahead... Read More

5 Methods Toward Reducing Your Debt

Decreasing your debt is paramount to having a good credit... Read More

Reducing Debt Before Its Too Late - How to Avoid the Pitfalls of Creeping Debt

Reducing debt usually isn't a high priority for people until... Read More

Whatever You Do....Dont Save Money!

No, that's not a misprint. Even though falling interest rates... Read More