SALT LAKE CITY — If you have upcoming credit card bills due and plan on only paying the minimum balance, there are reasons why that might be a bad idea and hurt you in the long run.
That's because you are being charged interest on any unpaid balance, and it compounds the longer it sits that way.
Dave Nellis with America First Credit Union says people need to do everything they can to avoid interest on balances.
"The minimum payment is not good for you," Nellis explained. "It's good for the lender because they can string you along; it extends the life of that loan for a very, very long period of time, so think about what's in your best interest."
Why credit counseling can make a difference in your monthly budget:
Those who can't pay more than that minimum payment because of a specific financial situation should find a solution to organize debt and
"Say, 'How can I apply a little bit more debt, maybe I have to sacrifice over here.' Focus requires sacrifice; start applying that to that debt because every debt comes with an interest rate and those high interest rates will bury you," Nellis added.
A simple visit to a financial planner at your bank or credit union, which is often a free service if you have an account at the institution, can go a long way.
