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Question By
nikkim4781

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lowering monthy payment
If i pay all my credit cards to under half currently they are almost at the limit, will that lower my minimum payment?

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Top Contributor
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yes, but that should not be your goal.

you minimum payment is based on a formula that, depending on your balance, will take 3 to 10 years to pay off.  That is a whole lot of interest, Sometimes as much as 3 to 4 times the original charges. But Credit card co's will love you if you only pay the minimum. It will also take for ever for you to see rises in your credit score.

Your goal should be to pay off all credit cards as fast as you can.  In fact you should never charge more than you can pay off at the end of the month unless it is a planned expense that you have a plan as to how it will be paid off. 

With interest rates in the 20% range for most cards. I would think that you would want to save as much of that cash as possible. 

Good Luck

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