Author: pollstump
For most Americans, credit cards have become a way of life. Whether it be for every day purposes, or for the purpose of buying large ticket items, credit cards are something that a large percentage of Americans have become very dependent on.
The true problem for most Americans that own credit cards, is when the monthly statement comes in. The question for these Americans is whether to pay off the entire debt or make monthly minimum payments. It is highly recommended to pay off the balance, if at all possible, to avoid high interest rate charges which can add up very quickly month after month. Most Americans are not able to pay off the entire balance, which leaves them with just monthly minimum payments. The monthly minimum payments are a great way of keeping the credit cards open, and keeping their credit rating in good standing but not beneficial in the long run.
It is highly recommended that people pay more than their monthly minimum balance, as this will pay more on their principal and not just interest. When making just a monthly minimum payment, the only thing that is being paid on is the interest rates every month. This in turn, will do nothing for the bottom line balance on the credit cards. Making a monthly payment of even $20 over the monthly minimum payment will be very beneficial to the bottom line balance. This will also maintain and even improve credit ratings for Americans, as this will show the ability to pay off debt.
Debt settlement is a legitimate alternative to filing bankruptcy. Consumers can expect to eliminate around 50% of their unsecured debt with the help of a legitimate settlement program. With the new FTC laws recently passed in July 2010, debt settlement is a much less risky option. If they don't settle your balance you don't have to pay a dime.
Check out the following link for free help from a certified debt relief specialist:
Article Source: http://www.articlesbase.com/debt-consolidation-articles/paying-off-credit-card-debt-why-pay-in-full-when-you-can-eliminate-some-first-3953840.html
About the Author
www.CreditCardDebtNegotiations.com is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.
http://www.CreditCardDebtNegotiations.com
contact us for free debt advice = 800-947-6055
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