The Never Decreasing Balances

Hi,
Now let's look at those bills that never seem to go down. Generally these balances are comprised of unexpected expenses which occur for all of us. Because these balances are unexpected, and not part of our monthly budget, we rationalize that it's ok not to pay them off as they occur. Or, we simply might not have the financial resources to do it. Your credit card company sets up your statement to specifically take advantage of this situation with the infamous "minimum payment due" option. When people make a minimum payment, they feel that they have made their monthly credit card payment. However, in many cases, making a minimum payment means that only the interest on the balance has been paid. Many times a person will pay the minimum payment for twelve months and be surprised that their balance has not decreased at all over the year. The only way to move this situation in a positive direction is to call the credit card company to ask them to work with you in finding a solution. Depending upon your situation, the credit card company might be able to reduce your interest rate, freeze your interest rate, and in some cases, reduce your balance. Tomorrow we will talk about stretching your bill paying dollar.
Until then,
Alan