The best thing that you can do for your credit is to make timely and full payments to your creditors. Whenever you carry forward any balance to the next billing cycle with your creditor, you will be charged an interest rate and the financial fees on the remaining balance. It is always suggested that you should be making larger payments on the total balance so that you spend less on interests and fees. If you are making just the minimum payments, the credit card companies are chargi
ng their highest interests and fees on every billing cycle. There are many of us who find it hard to make ends meet and are living on paycheck to paycheck.
If you are on the verge of not being able to make the minimum payments, it is time to get some serious help. In order to keep your credit in good standing, you should never get late in your monthly payments. But that means that you will have to make at least the minimum payments. And the minimum payments will also continue to get higher on every billing cycle. The credit card companies are making the maximum money from people in such financial crunch and penalize them heavily.
There is a way to fix this financial problem and not hurt your somewhat good credit. You need to enroll in a debt management program and combine all your bills under one monthly payment. Instead of paying to a number of creditors on a different due dates, you will have one monthly payment in the debt consolidation/debt management program. The debt management company will negotiate with your creditors to reduce the current APR. When you are paying directly to your creditors, most of the money is eaten just in interests and fees. In the debt consolidation program, you can afford to pay the same amount and see the maximum portion going towards the principal balance and less in interests. The debt management company will be negotiating with your creditors to reduce the current APR and waive off most of the financial fees. You will have a reduced balance to pay in the debt management program to all your creditors. If you have decide to enroll in the debt consolidation program, be sure that you will stick to the same repayment plan and if possible, pay any extra amount towards the principal balance on a certain month, thereby bringing down the total balance. The repayment plan in the debt consolidation program will be much lower that what you have been already paying to your creditors. However, you can always increase it according to what you can afford in the program. If you want to lower the payment plan in the debt consolidation program, the creditors will charge you their interests and fees again. Whatever may happen, do not default in your monthly payments in the debt consolidation program until you have completed it.