Opinions regarding financial matters can be helpful, but knowing the honest facts is infinitely more beneficial. Getting the facts regarding credit card debt is not always the easiest thing to do, but doing so will definitely help you to handle your monthly payments and communicate better with the credit card companies you have borrowed money from.
Having the facts regarding credit card debt will allow you to make the most efficient plan possible for getting rid of your debt once and for all.
Minimum Monthly Payments: Insufficient Funds
Lately this has been changing but for the most part the credit card debt facts are that minimum payments are not set up to help you pay off your card quickly at all. Minimum payments are set up to pay your monthly interest and service charges and then a little bit of the principle. If you are always paying your monthly payments then the credit card debt facts are that your credit card company would rather see you with a higher limit that you will spend up to rather than working with you to lower the principle.
The credit card companies are in it for interest and service charge payments and as long as you are making those then you will always be a hit with the credit card companies. Just paying $10 a month more to your minimum payment will speed up the pay off process but what will really help is not using the card at all.
Interest Rates Are Negotiable
A lot of people do not realize this and a lot of people do not keep track of their interest payments every month either. Look at the interest rate on your next credit card bill and just see what it is. If you started a couple of years ago with a great rate from some bank at around 12% then chances are by now it is up and around 20%.
The fact is that the credit card company does not have to inform you of a change in your interest rate. If you notice that your interest rate has gone up, call the credit card company and threaten to pay off the entire balance that you owe and switch to another company if they do not reduce your interest rates immediately. The results can be surprisingly beneficial.
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Do you know how credit card reduction services can affect your credit score? There are some things you need to know before using these services. Get the inside scoop on what you need to know on the Debt Smackdown website
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