47% of Americans with credit card debt pay only the minimum balance when making payments on their balance. Believe it or not, most of the time these minimum payments aren’t even enough to cover the amount in interest owed on this debt. So now what?
In today’s episode of Your money Minute with Tracy Stewart, CPA, I want to talk about speeding up credit card debt repayment by paying more than the minimum balance due. Credit card companies are in the business of making money on your debt — and they want you to pay only the minimum amount due. They make a killing off your interest!
Always pay more than the minimum amount due. Even if it’s only $20 more, this will keep you from getting burned by the interest. By increasing your monthly payments by $20 each month, you can save hundreds of dollars over the the span of paying off your debt.
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