"Make as little money as possible" may be a good budget mantra, but it's a bad strategy to pay for your credit card balance.

When you only pay the minimum payment on your credit card, you give yourself a temporary relief. But you also promise to pay more interest in the future. Over time, this kind of trading can bring you serious financial problems, especially if your credit card rate is high.

If you pay a minimum monthly limit for your balance, you can expect the following to happen:

It takes a long time to pay off the debt

When you only pay the minimum amount on your credit card, you will tell your debt, "See you next month." Credit card issuers tend to set minimum payment requirements at the bottom. You usually owe a fixed amount - usually $25 - or a percentage of the balance, whichever is greater. Some credit cards require you to pay only 1% or 2% of the balance each month, plus any fees and accrued interest. Paying these small sums on time can avoid late fees, but there will be no real progress in paying the balance.

You will charge a higher interest rate

Unless you are using a 0% APR card, your interest charges will increase as your balance increases. You can barely pay interest on the previous month by paying only the minimum amount. If you continue to charge your credit card, you will be falling behind.

Your credit may be affected

As your credit card balance rises, your credit usage will also increase - the percentage of credit you use. And because your credit utilization is a major factor in your credit score, a high balance can seriously damage your credit. This makes it more difficult to get affordable loans and credit cards with the best conditions. It can even affect your ability to find a job or rent a home, as employers and landlords usually review the applicant's credit.

If you can't afford more than the minimum cost, please ask for help

The minimum fee is better than the late payment. Also, because overdue payments can damage your credit score, it is necessary to pay at least the minimum amount.

But you should not do this forever. If your total debt exceeds half of your annual income, you will not be able to pay off within five years, and this is a major source of stress in your life, and you may consider bankruptcy. Consult a bankruptcy lawyer to find out more about your choice.
However, if you can find a payment method that is higher than the minimum wage, then do it. Handle your debt now, rather than drag it on later.