Your Credit Questions and Answers

The Credit Card Minimum Payment Trap One of the most common traps that people of all ages get into is the Credit Card Minimum Payment Trap.  The minimum payment is usually between 1% to 3% of your balance plus interest and any outstanding fees.  The Card will also have a minimum payment such as $30 or $20 if your balance ever gets that low.      Until I ran these examples I did not realize how expensive it was to pay the minimum credit card payment and how long it would take to pay off a balance by just paying the minimum. Here are some excellent Minimum Payment Trap examples I have created using the Bankrate.com Credit Card Calculator. $6,000 Borrowed on your Credit Card. Credit Card Terms for this example: 18% interest  1% Minimum payment, $30 minimum payment. Your initial minimum payment $150. Your payment will drop a little every month as you pay down the balance.  The first month you will pay $60 in principle and $90 in interest. ...