Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
kmacnme

0 Contributions
0 People Helped
Should I continue to make the minimum payment on my credit card
I have a credit card through my credit union that has been maxed out to 10K. I am going through a financial struggle right now, and it is hard to maintain even the minimum payment. But, I don't know whether I should let the credit union close the account and pay them a lower monthly payment for a year to bring the balance down, or keep it open and just try to make the minimum payment. I am already late with my payment, which was due on the 20th, but can probably make a payment next month.

So, I wonder if it's best to try and at least make the minimum payments, and bring the balance down on my own (which will take a few years) or let it go. It seems like either way, my credit score will suffer because of the time it will take to bring the balance down to 30% of the max. But, I had been keeping up the minimum payments up to this point, despite being still being maxed out. This made me think I should continue to do so because it would look favorable on my credit report.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
7344 Contributions
3805 People Helped

First, let your credit union know about your financial situation because they may have suggestions to help.  Stop charging on the card. Why dig yourself in deeper? If the struggle is due to reduction of work, then they may have some way to assist.  If it is due to over-spending, they may be able to give advice on how to correct this.  And your goal should be to keep usage at 9% or lower on credit cards.  Notify all creditors on your financial issues when there is trouble and you may find them quite helpful since doing so benefits both of you.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.