Don’t Just Pay The Minimum Amount For many consumers credit cards have been a godsend. You don’t have to bring cash with you which mean you don’t have to bring bulky wallets and stuff. It’s accepted at almost any store or shop and you can even use it online so that you are able to do your shopping without having to leave the comfort of your own home. Indeed, credit cards make us more consumer than we were before when cash is king. That being said issues come up that have a negative effect on our financial well-being. One of them has to be the fact that it discourages savings. That’s because with a card you don’t need to have cash. You simply swipe, enter a pin if needed and there you have it – you have purchased whatever it is you wanted to purchase. At the same time you wind up paying more for the amount that you used if you only pay the minimum amount recommended each month. You know what I mean; when you get your billing statement there’s a recommended amount set there as the minimum the credit card company is willing to accept. More often than not people heed this minimum amount and pay only this minimum amount. What they don’t know is by doing so you prolong your debt and wind up paying more in interest. There are a number of calculators out there that will show you what I mean. Let’s just say that if you owe $1000 with a 15% APR and just pay the minimum amount you will wind up paying for the next 4 and ½ years to pay. On top of that you will be paying about $370 in interest charges. So if it takes you over 4 years to pay off a $1,000 debt how much more for a $10,000 one? Well, let me tell you – a little over 15 years and you also pay over $6,000 in interest charges. If that’s the case you will be in debt for some time. That’s why it’s a good idea to try and increase your monthly payments over the minimum. This way you lower the principal amount and get through it quicker. But perhaps the best way is to not use your credit card as much. Watch the latest from Deborah Koval.