Fifty percent of people in America have carried a credit card balance for at least two years. The average household owes over $6,000 in credit card debt. If you are not making payments in full, then you will end up paying a lot more money in interest. It will also take you a longer to pay off your credit card.
Here’s an example of how paying a little more on your credit card can greatly help you. The balance on your credit card is $6,081. If you only make the minimum payment on your credit card, then it will take you 169 months to pay off the card. You can pay the credit card off in 65 months if you double the payment. If you pay an additional $100 per month, then you can pay the credit card off in 41 months.
If you have multiple credit cards, then the one that has the highest balance should receive priority. You can also pay the one with the smallest balance first. A financial advisor can tell you which strategy is best for you to choose.
After you have gotten out of debt, you will need to get into the habit of making the payments in full. You will be able to save thousands in interest. This will allow you to get the best return for your investment.