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Minimum Monthly Credit Card Payments: Are They Good Enough, or ...

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Article by Debt Violet

Minimum Monthly Credit Card Payments: Are They Good Enough, or do I Need Credit Card Debt Relief? ? Finance ? Debt Management

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If you?re like most Americans, then you probably have a lot of credit card debt. Deciding how much is too much to handle, and whether or not you should enroll in a debt relief program, takes a good knowledge of your own financial situation, combined with a firm understanding of the interest rates and other fees associated with your credit cards. Many people are only able to make the minimum payment on their credit each month. Doing so does keep your account in good standing, but what are the pros and cons of making only the minimum payment over the long term?


1.) As previously mentioned, paying the minimum amount by the due date will keep your account in good standing, as long as you don?t go over your credit limit. The credit company will report that you make your monthly payments on time, and this will have a positive impact on your credit score.

2.) If you?re having difficulty paying all of your bills each month it is important to keep your credit cards in good standing so that they can help to offset any other damage that might be occurring to your credit score via other unpaid bills.


1.) Paying only the minimum amount due each month usually barely covers the interest fees, which means that you?re not really making an impact on your actual debt.

2.) Your debt to available credit ratio will stay high, which reduces your ability to receive credit from other lenders.

3.) The balance available on your credit card is likely to be minimal, which will hinder your ability to use it in the event of an emergency.

4.) Maintaining a high credit balance is dangerous in an unstable economy, especially if you?re already struggling to pay for all of your bills. If you lose your job tomorrow you?ll most likely be unable to maintain the minimum payments, and your credit debt will quickly be turned over to a collections agency.

5.) If all of your credit cards are close to being maxed out and you?re only making the minimum payments, even if you always make those payments on time, you?ll actually hurt your credit score more than you?ll help it.

If you find yourself in a situation where losing your job would immediately cause you to lose your ability to make even the minimum monthly payments, then you should consider a credit card debt relief program to make your credit card balances more manageable.

See Related: Credit Card Debt Relief Basics

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Tags: Card, Credit, Debt, Enough, Good, Minimum, Monthly, Need, Payments, Relief, They


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