Paying bills is not something you look forward to. Signing away your hard-earned money can be downright painful, but it has to be done. You squeak by with the minimum payment each month, just enough to prevent the creditors from hounding you at your doorstep.

The good thing is, as long as you continue to make faithful payments, the credit card companies won’t say a word. The bad thing is, with a minimum payment only, you are likely to be in their treacherous grasp for several years to come. Of course the creditors aren’t going to complain. They have you right where they want you.

The minimum payment is assurance for the creditors that you have to at least give them something each month. Without it, we would always find an excuse to pay them later. Later might become never for some people, which is simply not good for business. However, credit card companies aren’t doing you any favors by accepting a low amount. A minimum payment only is our least favorite tool, and it is most damaging to your credit.

When purchasing an item such as a car, lenders will tell you that with a specific payment each month, it will take you a certain amount of time to pay it off. Creditors are not nearly as helpful. Certainly, they give you a minimum payment, but it is not related to the time it will take you to pay off your debt. In reality, it isn’t related to anything other than the fact that you owe them money. This may come as a surprise, but creditors are not in the position of helping you pay off what you owe. A minimum monthly requirement is just standard procedure.

The minimum payment may save you money month to month, but it will only hurt you in the long run. If you only make the minimum payment every month, you will accrue enough interest over time to keep you in debt. The longer you owe, the higher your interest rate will be, and the happier the credit card companies are. You can try to fool yourself into thinking that you are making a dent by making a minimum payment, but all you are doing is extending your prison sentence.

To avoid eternal debt, the minimum payment should be an indication of what not to pay. Minimum payments should be reserved for emergencies, when you are truly strapped for cash, not as a simple convenience. There are several much more helpful Ovation Tools that will aid you in repairing your credit. Choose one that works for you, and pay off your debt in a reasonable amount of time.

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