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Money Tip: Save Money by Paying More Than the Minimum

Making a dent in your credit card debt can seem daunting, but it doesn't have to be so difficult. More than 40 percent of you have resolved to pay off credit card debt this year, so I have a tip for making sure you achieve your goal more quickly.

Paying the minimum on your balance will satisfy the creditor's demands, but it won't help you make noticeable progress on your debt. You're paying interest on your balance every month and those payments can add up to significant amounts of money — and that's money that you could be saving! Schedule your next payment for more than the minimum to reach your goal of paying off debt sooner, and you'll save money on those pesky interest payments to boot.


Join The Conversation
melizzle melizzle 8 years
Here's an idea... don't buy stuff you can't afford.
ilanac13 ilanac13 8 years
i ALWAYS try to pay more than the min...if possible i try to pay double the min in the hopes that i'll make a larger dent in my debt and get it all paid off FAST
gigill gigill 8 years
Do the minimum payments even cover the amount of interest you pay?
JaimeLeah526 JaimeLeah526 8 years
I always pay as much as I possibly can. It really does help.
Spectra Spectra 8 years
Yeah, this one is kind of a "no duh" thing to me...when you pay the minimum, it's almost all interest and the balance does not go down hardly at all. When I was in college, I had a credit card that I carried a balance on and I could only make minimum payments on it for a while after I graduated and before I had a job. It really sucked to see the balance go down hardly at all when I was making payments every month. When I got my first job out of college, I payed half the balance off one month and the rest of it off the next month because my boyfriend (now my husband) told me that credit card balances are evil, lol. Now I don't ever carry a balance, so I don't really worry too much about that sort of thing anymore.
Modus-Vivendi Modus-Vivendi 8 years
This tip is "cut out sugary sodas" for the financial world. It's the most obvious thing, and most people who pay even the slightest attention already do it.
Antioxidant Antioxidant 8 years
Goood tip.
notoriuskitty notoriuskitty 8 years
I got my first credit card about a year ago and I had no credit whatsoever. I only charge little things I know I can pay off, especially because my credit limit is pretty low. But I try to pay it all off as soon as I get the bill. My last big purchase, my elliptical, was a good chuck of change, but since it was after Christmas, I got it on sale and was able to pay all that off the moment I got my bill. Hopefully I have good credit now!
shydcgirl28 shydcgirl28 8 years
I recently found out that if you pay 20% over the minimum on some cards they increase your credit limits faster.
aimeeb aimeeb 8 years
I always pay more than the minimum on my cc bill.
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