Repair Your Credit | Avoid the Minimum Payment (Pt. 2)

Like I said last time…

Welcome back to “Repair Your Credit.” CLICK HERE if you missed part one of this article. You’re here because

…enough is enough!

Believe me, I’ve been there. I have receipts from quick payday loans and debt relief to show for it. One day you will awaken to find that all you are able to pay to your creditors is the minimum payments. You simply can’t do anything more, which is unfortunate, because as I’ve already mentioned in this E-book, paying the minimum is the longest, most expensive possible path to take and still be able to pay off an account. If you’re OK with it taking years longer (and costing you much more than the credit you originally used), then paying the minimum is your speed. You shouldn’t go there, however.

Minimum payments are subtle, enticing and ultimately dangerous. They are financial time bombs that will leave your money in disarray if you lean upon them. They may seem convenient and affordable, but they are neither one of those things in the long run.

But they’re convenient for someone!

That’s right – for your creditors. It’s convenient for them because your paying the minimum only amounts to a cash machine in their employ. If you have a $1,000 debt, an interest rate of 18 percent and a two-and-one-half percent minimum monthly charge on your balance, paying it all off by only making minimum payments would take you 13 years. Again, I’ve mentioned this before. You need to know how much damage you can do to your finances with simple decisions, too.

If you’re dealing with multiple debts in this fashion, you’re in trouble. You’ll be spending so much on interest that could have gone to something useful. Like a retirement account, a college fund for the kids, a future vacation… anything truly worthwhile. Don’t follow this path to bankruptcy. Wake up!

Are you bailing water from your sinking ship?

If you are up to date with all of your credit accounts but have slumped into the habit of only making the minimum payments, this E-book is for you. It’s time to take corrective action.

First of all, consider each of the debts you own. Write them down, because the visual reminder should help spur you into action. You want to write down how much you currently owe, as well as the minimum monthly payment and the interest rate they require of you.

The true cost of paying the minimum

After that, go to this calculator. With it, you’ll input the necessary figures for each of your debts. The calculator will tell you how long it will take to pay each of them off. The truth can be sobering, but you must not lose heart. What may appear to be a prison sentence is actually a road map you can and must follow to dig your way out of debt, repair your credit and build wealth. It alone is enough motivation for change.

Next, let’s talk about how to chop these ominous debts down to size. By doing so, you’ll be able to pay them off quicker, while potentially saving money – thousands! CLICK HERE to continue reading…