Paying the Minimum

Credit card companies are not your friend.

Understand that one fact and you are ahead of many other Americans in credit card debt today.  There is a reason these companies lend you credit: they expect to make money off of your debt.  When you pay the minimum payment on an account, you are paying roughly 2% of your balance each month; at this rate it can take 30 years to pay off your credit card debt.

Understand that your are paying interest on your balance…and many times if you are severely in debt, that interest rate is pretty high (15% and above).  Debt consolidation is not ideal for every individual, so if debt consolidation isn’t for you, make sure that you are still managing your money so that your debt doesn’t last for 30 years. ■