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Eliminate credit card debt by paying more than the minimum balance.

One of the simplest as well as most efficient ways to reduce and pay off credit card debt is to pay more than the minimum amount each and every month. The extra money paid each month, no matter how much or how little it is, will make a significant impact to the customer’s finances. On the other hand, if you make only the minimum monthly payments on your credit card debt, it will be very hard, if not impossible, to get out of debt over a reasonable time frame.

It is true that statistics show that the average person has about nine credit cards. That includes a combination of cards from banks as well as stores or retailers. Not only that, but the average person has a total balance of about $7,300 on those cards and the average interest rate is about 14 percent.

With the amount of borrowing that the average consumer has, it can be very difficult (if not impossible) for individual's to get out of debt if they just pay the minimum each month. People should try to consolidate their credit card debt whenever possible to reduce the number of cards, and ideally interest rate, as a lower rate will allow more of your payment to pay off the principal.

Another shocking statistic is that many people continue to make only the minimum payments on their cards. Even though many borrowers have thousands of dollars of debt due, they are not committed to paying it down. The results of making the minimum monthly payments is an almost certain future of financial hardship for you and your family. At the same time, you will be lining the banks and other financial companies with windfall profits.

This table below shows what happens when you make only the minimum payments on your credit cards. You can compare that approach of making just that minimum payment vs. paying an additional amount towards your credit card bills on a regular basis.

How much do you save on debts by paying more than minimum

The example below is that you owe $7,200 on your credit cards, with an interest rate of 18%.

Monthly payment

Total interest paid

Total paid, including principal and interest

Time in years until debt paid off

Minimum each month



















So if you only make the minimum payment, it will take you 41 years to payoff your credit card balance in the first row. Not only that, but for borrowing $7,200, you will end up paying a total of $27,000 in total fees, principal, and interest expenses. This dollar amount is almost incomprehensible. So you will have to pay back almost 4 times the amount that you borrowed.

Compare that to paying a fixed $141 per month in example (row) #2. You can be out of debt in a “mere” 8 years. And if you increase your monthly payment to $261 per month, you can be out of debt in a fairly rapid 3 years.

Lets put this in perspective. Many people shop for the lowest prices when buying a product, or they may often comparison shop between retailers. Most people do what it takes to find a “good deal.” So you may spend time shopping around for a deal on a product, trying your best to save money, then end paying thousands of dollars in interest costs. So much for the time spent finding a good deal.

Think about it this way, when you make the purchase using your credit card, and pay any amount of interest, no matter how small, that good deal or cheap price you received just vanished. People should always review different lenders and the services they offer, and find the best credit card deals. Find more details on best credit cards for rates.

So lets use this in the example above. For those people that make only the minimum payment, the products you purchased for $7,200.00 ended up costing you over $27,000, and almost $20,000 in interest alone.

If you do need to use a credit card, you need to be sure to pay more than the minimum amount due each month. If you do not want to use a debt management plan or find other assistance, then the best way to win the battle with your your credit cards is to pay off all of your credit cards in an aggressive fashion. You need to control your spending and behavior to get out of, and stay out of debt.

By Jon McNamara














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