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We've all heard that paying the minimum on our credit cards is bad, but have you ever wondered just how bad? It's all too common today that we carry high balances on our credit cards and other forms of credit. It's easy to add to our debt with credit card spending, but seems difficult, if not impossible, to make any significant progress to paying the balance down. Did you know that if you take your minimum payment today and continue to pay that amount for the life of the debt, you can significantly reduce the total interest that is paid and pay-off your debt months or even years sooner. You can use the calculator below to try out different payment scenarios to reduce your debt faster and with less interest. If you can't find a scenario that works for you, there may still be options other than bankruptcy. You can contact a credit counseling agency. A credit counseling agency will work with the credit card companies to possibly lower your APR and set up a payment plan with a realistic pay-off date. They can take years off your debt and save you thousands of dollars in the process. |