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Making minimum payments won't solve credit card debt problems

When a Tennessee resident receives a statement from their credit card company, that statement will outline what purchases the individual has made with their card in the prior month, what costs have carried over from prior months of purchasing and what minimum payment the individual needs to make to avoid penalties on the account. While some people choose to pay off their credit card bills each month in full, others are not able to do so and just pay the minimums to keep their accounts open and available for additional spending.

However, if a person wants to conquer their credit card debt, just paying the minimums will not get them to their goal in a timely manner. Americans have, on average, around $8,000 in debt on credit cards. If they only make their minimum payments, it could take them over 20 years to clear out those debts. A person's interest rate, the amount of debt they carry and other factors can influence just how long it takes a person to pay off their credit card debts.

Paying more than the minimum payment can save both time and money. The more a person puts toward paying off their debt, the sooner that debt will disappear. Additionally, individuals may save costs in interest if they are able to clear their debt as quickly as possible, rather than letting their balance grow.

Credit card debt is a problem for many Americans, especially after the holiday season. It is always a good idea for individuals craft their own plans for addressing debt obligations.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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