Paying the Minimum Payment

  Once you have filled out your credit card applications and you have started making purchases with your credit cards you will end up with a bill at the end of the month.  The first and only thing a lot of people do is look at the minimum payment and pay only that amount.  This is not necessarily a bad thing but if you only make the minimum payments month after month it will take you a long time to pay off your bills.  IT doesn't matter if you credit card applications stated a minimum payment of 2% or 2.5%.  You are going to be paying for a long time if you continue to pay just the minimum payment.  What is worse, you are going to end up paying a lot of money in interest charges on those credit cards.  Look at this example:

  It can work to pay a minimum payment as soon as you get the bill for your credit cards each month but you should try and make another payment sometime through out the month.  Making the payment as soon as the bill arrives will ensure you make your payments on time and keep your credit history in good standing.  This will help when you decide you want other credit card applications, loans, or mortgages to be approved.  But unless you want to be paying for a long, long time and a lot of money in interest charges, you need to pay more than just the minimum payment each month.

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