Minimum Payments

By definition, a minimum payment is the minimum amount a credit card holder is required to repay each billing period on an open balance. This term is can be deceptive to new credit card holders, who may use their cards haphazardly. Many people remain under the impression that if they can afford their minimum payments each month they are financially secure; however, this is a serious misconception.

If you have recently found yourself struggling to make payments on time, you may be approaching a financial crisis. Contact a West Palm Beach bankruptcy attorney at Eric N. Klein & Associates, P.A. to discuss your current financial situation. Call 561-353-2800 to schedule a free consultation.

Interest and Long-term Debt

Because credit card companies earn their revenue primarily from collecting interest on debts owed, they do not inform debtors about the risks of long-term debt. When making minimum payments, you are allowing the credit card companies to charge interest on the largest amount of money possible. After a year or so of just paying the minimum amount due, you may have accrued so much interest that your monthly payments are not even chipping away at your debt; instead, they are paying off interest fees.

When paying credit card bills, it is important to pay off a substantial portion of your debt, otherwise you may have to face long-term debt and other financial hardships.

Contact Us

The West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. understand how stressful managing your debt can be. Contact us today at 561-353-2800 to speak with a qualified attorney who can help you explore all available financial options.