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You can choose to pay more than the required amount, to pay off the loan faster. Using the example above and paying five percent of the total balance due, an individual would increase their monthly payment but end up paying only $1,224.34 in interest. The total debt would then be paid in full in less than nine years. Obviously, the smart option to avoiding credit card debt is to pay the full amount due and avoid leaving a recurring balance on your card, but unfortunately, not everyone can afford to make more than credit card minimum payments.
For those with several credit cards each carrying balances in the thousands, it can be easy to suffocate under a slew of bills. Instead of defaulting on your debts and ruining your credit history, however, take the initiative to change your situation. You can start by making sure you understand all possible fees associated with your credit card to avoid extra charges that will further increase your total balance due. For instance, even sending a payment one day late can result in late fees and send your balance over your credit limit, also triggering an overbalance fee. A higher Annual Percentage Rate (APR), could be charged by some creditors as a result of your payment being late.
You may also want to try contacting each of your creditors directly; they may be willing to reward customer loyalty by negotiating lower interest rates. You could also consolidate all your credit card debts by transferring the balance to one card, preferably one with a lower interest rate.
