Don’t be fooled by this month’s surprisingly low minimum payment on your credit card statement. In an attempt to increase their number of minimum payments reached, credit card companies are requiring something around 2% of the total balance, which is quite lower than many companies previously required.
While this may seem all great for you and your checking account, the reality of the situation is, that it will take you almost twice as long to pay off your overall debt in the long run and you end up owing more than you would have if the higher minimum payment had been paid.
What this really means for you, is that credit card companies are tricking consumers into thinking that they are solving their economic problems, when in fact, they have found a way to wrangle even more of your hard earned cash into their greedy pockets.
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FAQ: How do I check my Free Credit Report?
Your credit report is the basis for your financial standing. No matter how slick or smart you may be, no bank will touch anyone with a low credit score. It's their money, why would they want to take a bigger risk than they need to?
If you don't know where your credit report score is at, now's the time to take a peek. Don't get surprised with a low credit score when you go in to review your report with a potential lender or even an employer, find out for yourself within minutes.
