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Facts And Important Information about Credit Card Minimum Payments

A lot of us have been making minimum payments-especially when COVID-19 started, hoping that next month will be better and they could pay more. However, this has been the case even before the pandemic happened.

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Helped with $ 27,000 $ 41,500 $ 35,000 $ 17,000 $ 23,500 $ 46,340 $ 21,000 $ 35,000 $ 26,700 $ 65,500 $ 57,400 $ 17,500 $ 75,500 $ 63,000 $ 35,000 $ 18,500 $ 55,000 $ 85,500 $ 43,000 $ 29,500 $ 27,800 $ 41,200 $ 35,800 $ 85,000 in debt

1 day 3 days 3 days 8 days 7 days 6 days 12 days 9 days 3 days 6 days 1 day 4 days 2 days 1 day 7 days 5 days 8 days 6 days 12 days 16 days 5 days 8 days 2 days 7 days ago in debt in

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Credit Card Minimum Payments

Most people have been paying only the minimum payments without a complete understanding of how it will impact their finances in the long term. This has become a habit for most credit card holders for a long time already.

In this article, you’ll learn how important it is to manage your credit card payments.

Reviewing Your Monthly Credit Card Statement

You receive your monthly credit card payment and you should review it regularly too. Once you receive your credit card statement, things you need to check are the following:

  • All your purchases or transactions from the last period.
  • The total of the transactions or purchases you made in the current period.
  • The total interest charges incurred.
  • The total updated credit card balance (sum of the transactions from last period and any additional fees or charges).
  • The minimum required monthly payment which you need to pay on or before the due date to avoid penalties.

It is important that you understand how credit card companies calculate your credit card monthly minimum payment.

The Disadvantage of Making Only the Minimum Payments

When you sign up for a new credit card, you will receive a credit card agreement which will include all information you need about how your credit card works and all fees in respect to the particular card.

The minimum monthly payment is a percentage of the total balance (usually 1%-3%).

But what happens if you continue making only the minimum monthly payments?

Answer: Your Debt Will Take Longer to be Paid Off

A credit card is a type of revolving credit which means you will just repeatedly pay it as long as the account remains open. Paying only the minimum will lengthen the debt period because whenever you make payments, a huge portion of your payment will be allocated towards the interest, not the principal.

The higher the interest rate is, the longer it will take for you to pay off your credit card if you make only the minimum payments. This is true because only a small portion of your payment goes towards the principal.

Missing a Payment

Consequences of Missing a Payment

Below are possible consequences if you miss paying the required credit card monthly payment.

  • Penalties will be levied. (Late fees plus interests)
  • The interest rate may increase. This is because your credit card lender might think you are high risk.
  • Missing a payment means your debt value remains or may even increase therefore could result in a higher debt-to-income ratio. This score is also used to measure your creditworthiness and might affect your application for new credit in the future.

If you continue to miss payments:

Your credit score may decrease significantly because the credit card company might report the missed payments to the credit bureaus.

Credit Card Debt Help – Ontario Exclusive

If you need help with over $10,000 worth of unsecured debts including Credit Cards, Personal Loans, Car Loans, Taxes, CERB, HST, 407, Household Bills, Payday Loans, and Student Loan, you are not alone. We can help create a debt relief program that will eliminate or reduce debt by up to 75%.

Our program is a government-approved debt forgiveness program designed to consolidate multiple types of unsecured debts into a single and affordable monthly payment.

This program is only available to Ontario residents at the moment. Speak to us, we can provide you a free consultation. We will help you create a personalized debt relief program to help you get rid of debt fast and legally.

Stop collection calls, wage garnishments, lawsuits, and interests with our amazing program. We don’t charge upfront fees, and your information with us is secured and confidential.

Credit Card Debt Help

Our Clients 5-Star Reviews

Paula Gray
Paula Gray
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Jennie Gerigs was amazing I’m not very techie lol but the process was quite easy to manage. I’m so grateful for all her help in this uncertain time!
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Teresa Swiader
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Amazing company , definitely recommend if you have any money problems.Suma was very helpful and helped us out alot.
M & E
M & E
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Alicia was terrific to deal with. She followed through consistently and was very patient through the process!
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Top 5 Key Benefits of our Ontario Debt Relief Program:

To know more what you can benefit from our Ontario Debt Relief Program, simply try our Debt Consolidation Calculator below and one of our debt specialists will get in touch with you and provide you the best debt relief option that fits your situation.

Do you want to experience Peace of Mind from all of these?

  • Credit Card Debts
  • Personal Loans
  • Car Loans
  • Taxes
  • HST
  • 407
  • Household Bills
  • Payday Loans
  • Student Loan
  • and more…

Talk to us! We will help you get out of debt.

We will help you reduce as much as 75% of your debts and consolidate it into a single affordable monthly payment. Your creditors will stop harassing you and all interest will freeze if you get into our Ontario Government Debt Relief Program.

Many Ontarians are already benefiting from our Debt Relief Program, YOU should too!

Find out how much you can write off portion of your debts by getting your Free Savings Estimate below. A debt specialist from National Debt Relief Services in Ontario will discuss all options and provide you tailor-fitted Debt Relief Program.

We will help you compare
the options and savings of all formal debt relief programs available to you.

SEE IF YOU QUALIFY TO:

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Frequently Asked Questions

A Debt Consolidation is a negotiated debt settlement offer made between you and your creditors with the help of a Debt Relief Agency in Ontario. Some key benefits of Debt Consolidation are interest-free program, no upfront fee required, combined monthly payment into one affordable amount, no lawsuits, and many more.

Yes, your assets are safe from creditors. A licensed debt relief agency in Ontario will help you come up with an offer to your creditors that will make sure your assets will be out of the paper.

No, in fact, this is one of the great advantages of a Debt Consolidation Program. All wage garnishment will stop from the day you filed the proposal.

The effect on your credit score is not going to be severe. Your credit score will most probably go to R7 Rating and will remain in your credit report for another 3 years after you completed the program. This means that it will not be permanent and you will still be able to rebuild your credit score.

 

This varies depending on the proposal you will be discussing with the help of a certified debt relief agency. It is also worth noting that debt consolidation cannot exceed more than 5 years.

If a debt is shared, you need to file a joint debt consolidation offer to your creditors. However, in most cases, in which the debts are individually incurred will have no impact on your spouse.

After three missed payments, your debt arrangement with creditors will be broken and you will end up getting chased again for the original debt amount plus interest.

A debt consolidation offer can be paid off earlier if you can. In this way, you receive your “Certificate of Completion” sooner and you can immediately start rebuilding your credit score. 

National Debt Relief Services Ontariois a certified Canadian Debt Relief Agency that offers FREE CONSULTATION to your debt consolidation needs. We value the trust given to us by our clients by making sure your personal information is confidential and private. Our personalized plans are designed to tailor fit your financial capacity. Our specialists will get in touch with you by simply answering a few questions thru the link provided below.

Why Trust National Debt Relief Services?

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