Debt Reduction – Don’t Make the Minimum Payments…Yet!
Debt Reduction - When you hear that you should be doing baby step 1 -2 – 3 while making your “minimum” payments on your credit cards, loans – there is a critical point to remember. Pay Attention! When you see them lower your minimum monthly payment – IGNORE IT!
Over at Debt Be Gone – check out their progress on clearing up their debt. They are doing a great job! This post reminded me I needed to share this with you. What the credit card companies and banks do you is complicated (finance charges and what not!) but what we need to do isn’t…
Keep your monthly payment the same as they are at your highest balance OR at least where they are right now.
Why?
Because the loan company, bank, credit card company is trying to get you still make monthly payments BUT lower them (not to help you!) so you will have the debt longer and end up paying MORE finance charges over the long haul.
I felt duped big time when I realized that they weren’t trying to help me – they were trying to make MORE off my situation.
Don’t fall for it.
Look at the bill – see the minimum payment right now. Add what you can extra then stay right there without going lower until you can add more to the debt. Take back the power of your money from those making BIG money at your expense.
Tammy
Tags: banks, blog, credit card, debt, debt blog, finance, finance charges, money
