Comments on: How to Break the Minimum Credit Card Payment Mindset

By: Ms. Frugalicious

Ms. Frugalicious — Sun, 27 Sep 2009 23:19:00 +0000

Thanks for breaking all this down in an easy-to-understand way. I’m trying to pay off credit card debt, and it’s good to see that every little bit helps.

Another thing that I’m trying to do is make more money each month to apply toward my debt. I read an advance copy of Loral Langemeier’s soon-to-be-released book, “Put More Cash in Your Pocket,” and it’s full of tips on tapping into your entrepreneurial spirit to earn more cash. I am offering my services as a private tutor at the local high school, and the extra money I make is going straight to my credit cards to help me pay down debt faster.

By: Mack jackson

Mack jackson — Tue, 22 Sep 2009 11:04:28 +0000

Great post, it will surely help many people who are not taking this thing very seriously.

By: Lee

Lee — Mon, 21 Sep 2009 21:39:32 +0000

I used to be in this dangerous cycle. In total it cost me around £3,000! Never again will I make the minimum payment.. my card is set to “pay in full” automatically each month.

By: Eric J. Nisall

Eric J. Nisall — Sat, 19 Sep 2009 17:25:47 +0000

Jeremy, I have been waiting for a long, long time for someone beside myself to acknowledge the fact that credit can be a useful too if used within reason. Too many people dismiss it, as well as the credit industry as the "evil empire" and crying victim all of the time. I do agree that there are built-in traps that come along with credit usage, but it is ultimately up to the individual to take responsibility for its use. It seems that many people can benefit from some sort of credit education course before being extended the privilege of receiving a line, and that is a common theme of the credit section of my own blog. Hopefully, people will start to realize just how damaging laziness and ignorance can be when it comes to their finances and learn from their mistakes as well as those of others.

By: Rhea

Rhea — Sat, 19 Sep 2009 10:42:02 +0000

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By: Bobby

Bobby — Sat, 19 Sep 2009 03:41:10 +0000

Fantastic breakdown. I’d never really thought of the minimum payment trap in those terms, but I do recollect that the numbers on making one extra mortgage payment a year had a tremendous impact over the life of the loan. Same operating principal.

By: Save Money Hound

Save Money Hound — Sat, 19 Sep 2009 00:31:43 +0000

Agree that paying your credit cards in full each month is the way to go. It is also a good idea to set up an automatic payment system from your cheque account to make your credit card payments. Make sure you have enough buffer in your cheque account though.

By: David@DINKS Finance

David@DINKS Finance — Fri, 18 Sep 2009 01:19:51 +0000

I pay off both my credit cards in full each month. If I had a friend who was in the “minimum payment phase” I would try to encourage them to pay off as much as possible – if it was someone I hung out with a lot I would recommend activities that cost little to no money. People who are $8,000 in debt yet go buy a hookah for $50 I simply can’t feel bad for (and yes, I do have a friend like that)!

By: Michael

Michael — Thu, 17 Sep 2009 20:29:29 +0000

Excellent article. One point I might add. If unable to payoff the entire balance, I advise people to seek a small line of credit from a bank. These products often carry interest rates substantially less than their credit cards.

Michael
BestCreditCardTips.com

By: Savings Accounts Girl

Savings Accounts Girl — Thu, 17 Sep 2009 20:21:15 +0000

Definitely agree with you Craig.

& I don’t think this is a secret to anyone with the minimum payments. In fact, it’s just an option. Either you pay in full, pay most of the debt off, or pay the minimum balance. Yeah if you pay just the minimum – you would be paying more interest (but everyone knows this).