In an effort to urge people to pay off credit cards more quickly, there is a move afoot to have credit card companies raise the minimum payment due each month on an outstanding balance. This approach is coupled with the idea of preventing credit card companies from arbitrarily increasing credit limits without the express consent of the customer.
While the motivation behind both actions is certainly laudable, there is some concern on what raising minimum monthly payments on credit card accounts would mean for some households. Since a common process of eliminating credit card debt is to pay the minimum amount on other accounts while focusing on the task of paying off one card, this measure could possibly derail efforts that some households are already making to become debt free.
At present, the decision on whether to implement both these policies is up in the air. In the interim, consumers should begin preparing for this potential increase now, making the transition a little easier than it would be other wise.
Since the increase is likely to be somewhat minimal, make it a point to begin paying at least twenty percent above you’re the current monthly minimum. Even if this proves to not be enough to cover the increase, it will at least lessen the blow to the household budget and make it somewhat easier to find the remainder among variable line items in the budget.
Keep in mind that the sooner your credit card debt is retired, the sooner you will have more funds at your disposal each month. While an increase could mean additional difficulties now, the measure has great potential to make the future more pleasant.
Tags: Cred Card, Debt, debt management, Minimum Payments
