Making only the Minimum Payment on your Credit Card may keep you in Debt Forever
Minimum Payment Warning on Credit Card Debt Statement
Have you checked the minimum payment warning on your statement? It is required by law on every credit card statement although most people have never even heard about it.
Take a look at this credit card statement captured by ksmithcredit on this viral Tiktok that has around 2M views.
This credit card statement with a balance of $4,107.82 and a minimum payment of $97 will keep you in debt forever by paying just the minimum amount. This stresses the importance of paying more to reduce interest and pay off the balance sooner.
How to Break Free from your Debt:
Since you now know that sticking to the minimum payment could keep you in debt forever, it’s a clear sign to always pay more than just the minimum on your credit card.
How to avoid paying interest:
To avoid paying interest, you will want to pay off your statement balance in full every month on or before your minimum payment is due. Unfortunately, many people have gone through a hardship and currently find themselves in the position where they cannot afford to pay their balance off in full anymore. Even worse, they cannot afford any more than just making the minimum payment on their credit cards. Being in this situation can be extremely stressful and feel like you’re in a dead end. The good news is that if you are in this situation, I do want you to know that hope is not lost.
To escape this trap, you do have options to get out of this minimum payment cycle.
Options to get out of minimum payment cycle:
The options you have include:
- Credit card balance transfer
- Debt consolidation loan
- Debt settlement
- Debt management Plan
- Bankruptcy
There are several ways to consolidate your debt, contact AAA Debt Solutions at 844-844-1909 for a free consultation to explore your options. Or, fill out the form below to be contacted for credit card debt relief.
