Changing to the minimum payment on CC

ferry

I'm considering changing from my fixed payment each month on my CC to the option of just paying the minimum each month for the next 3 months to help with the Festive period.I've always paid over the minimum amount to keep the balance reasonable.
Firstly,by doing this am I actually paying off any of the interest and 2, will this be viewed by my CC provider as a potential payment 'problem' for them to question me about..?

Thanks for any advice
F.

jonesMUFCforever

As long as you pay the minimum amount asked and do not exceed your limit they won't bat an eyelid.

Megatimbo

Hello ferry,changing to just paying the minumum payments isnt the sign of impending doom for the credit card companies as long as this is honoured each month then all is well.
As you have mentioned this is likely to be a temporary arrangement and you wont be paying minumum for ever.
I am doing the Snowball on my debts which is part of the paying only what is due on all the credit cards apart from the one with the smallest balance which just happens to be the highest APR so concentrating all the "extra" from the other cards onto the small debt,this will benefit you as the little debt will reduce faster "with Gazelle intensity" as Dave Ramsey puts it.

Also the min payments are designed to pay off the principle and to include the interest aswell,so it will go down albeit slower than before.

As someone put it "if you dont think anyone cares about you try missing a payment" thats when the credit card companies will get on your case

Regards M

ferry

Cheers guys for the excellent advice as usual

F..:T

JoeHel

They are MORE than happy when you just make the minimum payment ... it's how they make the most money :rolleyes: Lots of people (me included, until recently) only ever do this, not realising just how long it takes to pay things off this way!! They won't worry at all until you miss a payment or are late.