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.