When you are not able to pay off the total credit card bills that have been used, usually people will take advantage of the payment option with the payment of the minimum credit card payment to stay protected from BI’s blacklist . Many consider that this option is the most appropriate solution so there is no need to bother getting out of BI’s blacklist . However, is it true that this can be the right step?

 

Pay with Minimum Payment = Hoarding Debt

Pay with Minimum Payment = Hoarding Debt

A while ago we discussed this. The definition of minimum payment is payment for credit card bills with only (on average) 10% of the total arrears + bills that are still not paid off in the previous month (if any). Impressed not too burdensome? Even though it’s not too. You could say paying with a minimum payment every month will only make you hoard debt. You will not pay off the debt. Minimum credit card payments will not help you to be debt free at all, the interest charged in the total bill will continue to accumulate and the debt accumulation will increase.

 

Longer Debt Disbursed

Longer Debt Disbursed

The continued impact of continuing to hoard the most obvious debt is that the debt you have is getting repaid. Even though the impression is that you have paid in installments little by little, even though in reality it takes too long to pay off the debt. Why? Because there are flowers that continue to accumulate every month, so even though it seems like it has been repaid a lot in reality you only pay a little.

 

The Right Way Out

The Right Way Out

 

Savings

One of the first steps you can use to pay off credit card debt is to reach savings. Even though it feels very unfortunate to pick up a savings account, but in an emergency to pay off credit card arrears like this, you can use this option. It is better to pay off all debts immediately than to be constantly entangled with accumulated debt that is not paid off, right?

Family assistance

Another option you can do is ask for family help. One of the advantages of asking for family assistance is that you will not be charged the credit card interest as you should. Of course responsibility is needed to return the money. Even though the family will be happy to help, the debt you have is not their responsibility. So, show good faith by paying installments regularly.

 

Utilizing Companies that Provide Debt Management Programs

This last method can free you from debt faster and lighter. You can use a company that provides a debt management program. Companies like this can provide programs and negotiate your debt, so you can get relief from the bank. The debt that you have can be accompanied by pieces, not only guaranteed to be free of debt faster, you can also pay off more easily! Bank relief programs that can be managed by companies like this for example:

  1. One Time Pay Discount

    You don’t have to wait and linger to pay off your debt faster and bigger pieces. If you succeed in getting this program, the discount earned can be up to 70% of the total debt obligations that must be paid! 

  2. Low-interest installments whose tenor is extended.

    This program is suitable for those of you who have limited funds but still need relief. You can pay off the debt with a much smaller interest rate and adjust it to the financial conditions and the results of negotiations with the bank.

 

Therefore, stop paying credit card bills with a minimum payment

stop paying credit card bills with a minimum payment

You can also check the credit card repayment simulation with a minimum payment here . If you use the method   with the reason that they are unable to pay off in full, there are other ways you can do it. The method is to take part in a bank relief program. This method is certainly better than continuing to make payments with minimum payments , which are not much different from delaying the arrears of cards. You can take part in a relief program so you can get a discount in paying credit card bills.