Credit cards are a double-edged sword. As long as you pay the balance in full each month credit cards can be a good financial tool. However if circumstances force you to carry a balance and only pay the minimum payment then credit cards become a debt crutch that is hard to get away from.
 

I myself in the past paid the balance in full on my cards, however due to circumstances beyond my control I had to carry a balance on my cards. I used credit cards to makes ends meet and I didn’t see the all of the debt that I was incurring at the time.

 

It put me in a very bad way because of an extended illness and a drop in my business income. The point is that I relied on credit cards to stay afloat and often paid the minimum due and turned around and used the credit cards repeatedly. The compound interest on the cards kept growing and growing.

 

The minimum payment on your credit card is generally 2 to 4 percent of the balance. Minimum balance payments are designed to keep you in debt nearly forever, at least for many years. Paying the minimum payment only prolongs your debt indefinitely.

 

If you want to get out of debt, stop using those credit cards and do whatever it takes to pay those balances.

 

I found interesting calculator on Bankrate.com that calculates the true cost of a balance and paying the minimum payment. It is a real revelation to see the true cost of paying only the minimum payment. Give it a try.

 

Also on Free Money Finance, I found a good post about minimum payments and how long it can take to pay them off.

 

 

The point is that only paying the minimum will cost you so much more. Your money should work for you not the other way around. Be wise and get those credit card balances paid off.