How much you should pay for your card credit payment
Finance Credit Cards

How much you should pay for your card credit payment

Published at 03/21/2012 22:21:36


How much you should pay for your card credit payment

Today, there are over 50 different credit cards, maybe more. Stores, oil companies, and banks have an interest in credit cards. Secured, pay-as-you-go cards, and debit/check style cards that are used anywhere the symbols on the card are accepted. For every form of credit card, there is a merchant account with special coding and symbols. Fees are charged for credit cards by the issuer, where debit or ATM cards' fees may be charged by the bank or the merchant account. Credit is a convenience, a hindrance, and a way of life.

Credit card debt is in the billions and climbing. The financial crisis that began a few years ago is not over. Statistics show that many card holders have three to seven credit cards. Interest rates range from the introductory rates of 2.5 % to 30 % and higher. Regulations are lacking in controlling the interest rates and fees credit card companies charge.


How much you should pay for your card credit payment

For decades shop keepers extended credit, recording purchases in a ledger. Credit coins and charge plates were issued during the 1800s. In the 1960s the first plastic credit card was issued. The first credit cards were issued by department stores and oil companies. These cards were only good at the store or gas station that issued them. In the 1900s the use of credit cards grew for stores and oil companies. In 1946 the first general credit card was born. According to Mastercard the creator was John Biggins and the card was called “Charg-it.” Only bank customers had access to the card. The Franklin National Bank issued a credit card to loan holders of the bank in 1951. American Express states they have been around since 1850 and the Diner's Club originated in 1950.

Calculate Payments

How much you should pay for your card credit payment

You have options to paying off your credit card debt. By making the minimum payment on time you prevent late and other processing fees from piling up. However, by paying the minimum you lengthen the amount of time on that debt. What happens if your balance is $2500? Minimum payments are $25 to $35 per month; at 17 percent interest, you will have paid $1700 to $1800 or more in interest and fees.

The minimal payment will keep you in debt and cost you more than the products are worth. With a $2500 credit card debt, at 17 % interest, rather than make the minimum treat it like a house payment or car payment. Double your minimum payment, if it is $30 make it at least $60. When you can pay more, do so. You will reduce the amount of interest, fees, and total cost of your credit card.

Enter the balance due, interest rate, and minimum payment at to calculate how long it will take to pay off the credit card balance.


Revolving credit cards have a balance that never ends, as soon as your debt is paid a new credit balance is issued. Department stores and jewelers keep customers by extending greater credit because you were a good customer and paid the balance off. Secure credit cards ask for $250 to $500 deposit. You have as much to spend as you have paid on the card. When you make your payments on time and pay back what you put on the card, the credit-card issuer extends your credit line beyond the deposit.

All interest rates and balances are negotiable. The issuer of your credit card will negotiate a final payoff or interest rates. However, no negotiation is possible if you are always late with your payments or skip payments. To create a bargaining chip make your payments a few days early, and if you cannot double the payment, at least pay one and half the minimum amount. A $30 payment becomes a $45 payment. After six months, write to the credit department of your credit card issuer and ask for a reduction in your interest rates. Keep asking every month until you reach a reasonable compromise.


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