One drawbacks of having credit cards is that all cardholders have to worry about increased monthly minimum credit card payment. Unfortunately, if one card company increases their minimum credit payment, the rest follows. For cardholders, they have no other choice but to accept the change so unless you pay off the balance, you will have to make higher payment. To know how to respond properly once credit card companies start to increase their minimum payment rates, check the following tips:
One: One of the first things you need to do in order to keep current on your minimum payment is to call your card issuer. You have three options, you can either accept the changes, cancel your card or you have your balance converted on a fixed rate loan. Think all these options over and decide which one will work best to your advantage. The reality is that most credit card companies would rather work something out with their clients than lose them completely. As long as you are able to hold your ground once you negotiate, you may obtain a better deal.
Two: The last thing you want to get a high credit debt on a card with the minimum payment already hard to pay off. To avoid the high rates, you need to avoid using your card to make purchases until you are able to pay all of your credit debt off. Once you are able to pay for everything you owe, you can start to make small purchases on the card and pay the balance in full each month.
Three: If you do not carry any balance on your card, then you will not be affected by the increase in the minimum amount of payment. If you are consistently paying off your balance, then you are likely to be paying more than the minimum amount of payment. Because your minimum payment is a percentage of your balance, reducing your credit debt will lower your minimum payment. Occasionally, you will pay off all your balance completely, which is one of the best ways to avoid increases on your minimum payment.
Four: If you can not afford the increased minimum payment and you are left with no other options, then it is best to switch your card to one with a lower, more affordable minimum payment. Of course, you may end up with higher interest charges on the new card so make sure you have the capacity to pay the rates and compare various cards in order to determine which credit card companies can provide you with better rates.