By Tim Kowols
Making the minimum payment on your credit cards might keep the collectors away for now, but it could lead to more pain down the road. According to the U.S. News and World Report, minimum payments are usually set between two and seven percent of the total balance depending on where consumers borrow the money. However, that can cause future payments to balloon to unstable levels and cause your credit score to plummet. Gay Pustaver from Money Management Counselors says there are ways you can take a bigger chunk out of your debt if possible.
If you do have to go back to making minimum payments because you cannot afford to pay more, Pustaver suggests seeking financial counseling and start a debt management plan. You can listen to the entire Money Management Monday show with Gay Pustaver online with this story.