Requesting Lower Minimum Payments is Hard

by : Ronnica Rothe

on your credit card bills can be quite difficult. If you have seen your cards' minimum payments increase more than you can handle, you might find it difficult or even impossible to get those minimum payments lowered.

These days minimum payments are primarily based on the balances you carry on your credit cards. The adds up finance charges and a percentage of the total balance, usually 1 percent. Both of these two figures are directly based on the balance. The larger the credit card balance you have, the more you will have to pay on a monthly basis. Chances are, this is the reason you have seen your minimum payments increase.

Since charging up your card leads to , it is pretty obvious that paying down the balance on your card is the solution to seeing your minimum payments lowered. However, this requires that you pay significantly more than the minimum payment on your account which you probably cannot do if you are wanting to lower your minimum payments in the first place. By lowering the balance, you will owe less on the account and you will see your minimum payments going down.

If aggressively paying off your credit card bills is not an option, you will have to find another way. The best way is to talk to a credit counselor who can provide appropriate information to help you make an informed decision. They can also discuss with you what a debt management plan is. A debt management plan is a way to lower your interest rates, which reduces finance charges and oftentimes your minimum payments as well. Because you pay less in finance charges, more of your monthly bill will go to paying down your debt. A debt management plan can allow you to pay off your bills in less than 5 years in most cases.

Talk to a credit counselor if you find yourself in a situation where you can't make your minimum payments. The sooner you seek help, the less likely you will need to use aggressive techniques such as bankruptcy to escape debt. The faster you get assistance, the less damage will be done to your finances.