Comments on: 24 Signs That You Could be in Financial Trouble #17: Paying Only the Minimum Payment on Your Credit Card http://genxfinance.com/24-signs-that-you-could-be-in-financial-trouble-17-paying-only-the-minimum-payment-on-your-credit-card/ Helping a unique generation achieve financial independence. Thu, 24 May 2012 01:09:21 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Kristina http://genxfinance.com/24-signs-that-you-could-be-in-financial-trouble-17-paying-only-the-minimum-payment-on-your-credit-card/comment-page-1/#comment-62861 Kristina Fri, 14 Mar 2008 12:36:17 +0000 http://genxfinance.com/2007/04/12/24-signs-that-you-could-be-in-financial-trouble-17-paying-only-the-minimum-payment-on-your-credit-card/#comment-62861 This is brilliant advice. Luckily for me i sort of knew about this already - i learnt my lesson through a credit card experinece of my own. The post will be very helpful for those who are not fully aware of the disadvantages of paying only the minimum amount required. I am so glad that you gave an example with calculations because this really did help to reinforce what was said already. It became even clearer. Thank you so much. This is brilliant advice. Luckily for me i sort of knew about this already – i learnt my lesson through a credit card experinece of my own. The post will be very helpful for those who are not fully aware of the disadvantages of paying only the minimum amount required.

I am so glad that you gave an example with calculations because this really did help to reinforce what was said already. It became even clearer.

Thank you so much.

]]> By: Greg Hampton http://genxfinance.com/24-signs-that-you-could-be-in-financial-trouble-17-paying-only-the-minimum-payment-on-your-credit-card/comment-page-1/#comment-3270 Greg Hampton Thu, 26 Apr 2007 16:21:44 +0000 http://genxfinance.com/2007/04/12/24-signs-that-you-could-be-in-financial-trouble-17-paying-only-the-minimum-payment-on-your-credit-card/#comment-3270 The minimum payment is one of the most misunderstood and poorly explained principles of credit cards. In 2005, new regulations forced credit card issuers into increasing the minimum payment percentage so that at least a small portion of the monthly payment would go toward the balance. Unfortunately, this percentage is difficult to find and is not listed in most terms and conditions. Call your issuer to find out the percentage used for your account, then use a rate calculator to figure out how long it will take to pay off your balance. Most consumers will be shocked to find how long it will take them to pay off the balance by just paying the minimum. While Congress is focused on the credit card industry, they should require credit card companies to provide this calculation on the cardholder's monthly statement. The minimum payment is one of the most misunderstood and poorly explained principles of credit cards. In 2005, new regulations forced credit card issuers into increasing the
minimum payment percentage so that at least a small portion of the monthly payment would go toward the balance. Unfortunately, this percentage is difficult to find and is not listed in most terms and conditions. Call your issuer to find out the percentage used for your account, then use a rate calculator to figure out how long it will take to pay off your balance. Most consumers will be
shocked to find how long it will take them to pay off the balance by just paying the minimum. While Congress is focused on the credit card industry, they should require credit card companies to provide this calculation on the cardholder’s monthly statement.

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