The Problem with Minimum Credit Card Payments

Attorney Joshua LawhornCredit cards are readily available to the majority of Americans and, when used properly, can be quite useful. They are convenient for emergency situations and can provide more security. If you manage to be responsible with your credit card use, you can also build your credit score. This may help save money when financing something like a home or vehicle. Unfortunately, responsible credit card use is not as easy as it sounds.

Aquiring Credit Card Debt

Quite often, credit card debt begins with good intentions. You tell yourself that you will pay it off every month, pay period, or even every week. These intentions get interrupted by unexpected costs or unforeseen circumstances and before you know it you are only able to make minimum payments on your credit cards.

While the average credit card debt per household is somewhere close to $6,000.00, the average credit card debt per indebted household (households whose credit card debt goes unpaid for several months or even longer) is closer to $15,000.00. According to NerdWallet, if you make minimum payments on that amount, it will take nearly seven years to pay that debt off completely. Upon repayment, you not only will have paid off the principle amount owed, you also will have paid roughly $10,000.00 in interest. This, of course, assumes that you make no further purchases over that time. The minimum payment could also be over $300 a month, an amount that many families cannot manage.

Stop Using Your Credit Cards

The first thing to do if you are unable to pay off your credit cards each month is to stop using them. Continued use will only pour dirt into the hole from which you are trying to escape. A balance transfer to a different credit card may be tempting, but more often than not just provides the opportunity to fall further into debt.

If you find that you are unable to handle even your minimum credit card payments, there are other options. Whether you need formal debt relief or just advice on the best course of action, please contact our office nearest you to set up a free consultation with one of our experienced attorneys.

 

Share This Page

Bond & Botes Law Offices

At Bond & Botes, we now offer full service bankruptcy consultation and filing over the phone or by video from the comfort and safety of your home or office. Please call 1-877-581-3396 or click here to setup your free phone or video consultation.

The lawyers at the Bond & Botes affiliated offices serve clients at offices in Anniston, Birmingham, Mobile, Montgomery, Opelika, Decatur, Huntsville, Florence, Haleyville and Gadsden, Alabama; Vicksburg, Hattiesburg and Jackson, Mississippi. Read our disclaimer here. You can view our Privacy Policy here.

Alabama Offices

Birmingham

2107 5th Avenue North
Age-Herald Building
Birmingham, Alabama 35203
Phone: (205) 802-2200


Shelby County Location
15 Southlake Lane, Ste 140
Birmingham, AL 35244
Phone: (205) 802-2200


Florence Location
121 S. Court Street
Florence, AL 35630
Phone: (256) 760-1010


Huntsville Location
225 Pratt Avenue NE
Huntsville, AL 35801
Phone: (256) 539-9899


Montgomery Location
311 Catoma Street
Montgomery, AL 36104
Phone: (334) 264-3363


Decatur Location
605 Bank Street
Decatur, AL 35601
Phone: (256) 355-2447


Haleyville Location
914 19th St.
Haleyville, AL 35565
Phone: (205) 486-3580


Gadsden Location
430-B Chestnut Street
Gadsden, AL 35901
Phone: (256) 485-0195


Opelika Location
216 South 8th Street
Opelika 36801
Phone: (334) 887-7666


Anniston Location
1302 Noble St #2C
Anniston, AL 36201
Phone: (256) 344-3559


Cullman Location
200 Second Avenue SW
Cullman, AL 35055
Phone: (256) 739-9866


Mississippi Offices

Jackson Location
5760 I-55 North, Ste 100
Jackson, MS 39211
Phone: (601) 353-5000


Hattiesburg Location
607 Corinne St, Ste B8
Hattiesburg, MS 39401
Phone: (601) 264-7200


Vicksburg Location
1212 Farmer Street
Vicksburg, MS 39180
Phone: (601) 353-5000

© 2024 by Bond & Botes Law Offices. All rights reserved. Disclaimer | Privacy Policy