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Manage Your Credit Card Balance

Sometimes managing your credit card balance can be a challenge. If you already have a high balance, it can become increasingly more difficult to keep up with your payments each month. For those who only make the minimum payment each month, you may find that your balance never really seems to go down very much. You could be paying on your credit card for many years to come.

There are ways to work towards better managing your credit card balance. Some people just use their credit cards throughout the month for convenience. For example, you may pay with your credit card at the gas pumps. Others use it for small purchases throughout the week before they receive their next pay check. Then, they pay their balance off in full each month. In doing so, you never need to pay interest and will never carry a balance. However, if you charge a great deal on your credit card, this is most likely not an option.

You can also manage your credit card balance by paying more than the minimum payment each month. This way, you will begin to pay off your balance sooner. Create a budget for all your expenses each month. Figure out how much you can afford to pay on your credit card. If you decide that you can pay $75 and your minimum payment is usually $50, by all means pay the $75. Continue to do so for as long as you are able. As you begin paying down your balance, you will notice your minimum due will go down. Continue to pay the higher amount on your credit card if your budget allows.

One should only pay the minimum payment each month as a last resort. If you absolutely cannot afford to pay any more than the minimum, this is the only reason you should do so. By paying the minimum only, you will continue to accrue interest on your balance. You will not see your balance decrease very much at all. It could literally take 10 or 20 years to pay off your balance this way. This is the least ideal method of working with your credit card balance.

There are other things you can do to keep your credit card balances down. Set a limit on how much you allow yourself to charge. Try not to accumulate a balance that is anywhere near the credit limit. Tell yourself that you can only charge X amount of dollars each month and then stick to that amount. If your balance is out of hand, stop charging. Concentrate on paying down your current balance instead. Being responsible spending habits today.

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