What Happens When You Make Minimum Payments On Credit Cards? – U.S. News
- November 7, 2018
Featuring Jeff Arevalo, Financial Wellness ExpertÂ
Making the minimum monthly payments on your credit cards can lead to maximum pain.
By paying only the lowest amount required each month, you’re stretching out how long it takes to wipe out your credit card debtcredit card debt and paying considerably more interest than you otherwise would.
Minimum monthly payments can be a short-term approach to dealing with financial troubles and, by itself, a minimum payment won’t hurt your credit scorecredit score because you’re not missing a payment.
Nonetheless, experts strongly suggest making more than the minimum payment each month to avoid digging yourself into a financial hole.
Jeffrey Arevalo, a financial wellness expert at GreenPath Financial Wellness, a nonprofit that provides financial counseling, says, “Even paying just $10 more than the minimum each month will help pay down the balance much faster.”