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Avoid Minimum payment On Credit Card 

Before we discuss why one should avoid minimum payment on credit card, it is imperative to have a look at the credit card system .Credit cards are the new way of loan where the lending agency does not provide its customers with cash. A plastic card is issued with confidential information and a guarantee so that the customer can purchase and shop for the things he needs. The lending company through credit card information will pay the bill for this shopping or any kind of usage.

It looks convenient and wonderful of having just a card in your pocket and buy whatever you want but it needs care and considerations to make a good use of the credit card. It sounds good that you can purchase everything you want but remember that you will have to pay not only the original price of the commodity you are purchasing with your credit card but the interest will beaded in the original price of anything you bought.

Many people pay off these bills monthly to keep their credit card debt in check but find that the debt keeps on increasing with the passage of time. The economic conditions of the day require the use of the credit card by people to keep an advanced life standard. Credit card companies provide the option of minimum payment for their customers. It means that you have to pay a small portion of your debt every month and the percentage is decided by you. For example if you say that you will pay off 20% or less of your debt every month the company will accept it happily. Many people find it a good deal for them due to the ease of payment but they cannot see the drawbacks of minimum payment on credit card beforehand.

To avoid minimum payment on credit card is the advice of those who have realized the mistake they made when opting for this choice considering it very attractive and useful but found it misleading and burden later on. Some of the disadvantages of minimum payment are given below.

You should avoid minimum payment on credit card because it is only a percentage of your total debt and the original amount of your debt will go on increasing with the passage of time. The interest will also go on increasing and make it impossible for you to get rid of the loan for good.

Avoid minimum payment on credit card because a very long time is required to pay off this debt and even if you stop using your credit card you will find it difficult to pay off your all the debts. you will be wondering how much you actually took. The amount of the debt goes on increasing and the minimum payments have no reducing effect on the amount of total loan.

Many people consider that it is a very good way to improve their financial condition but it is a deception and it is wise to avoid minimum payment on credit card. If your minimum payment gets late, you will be charged extra amount and it will also increase the monthly percentage which makes the loan even bigger.

 



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