Paying Back Debt
It is helpful to plan how to pay back your debt. You should plan on making payments on your debt just like your other bills. The longer it takes you to pay off your debt, the more you end up paying.
You pay the same amount each month with loan debt. You can add extra money to your payments. This will help pay your loan and get out of debt faster.
Minimum Payments
For credit cards, there is a minimum amount you must pay each month. The minimum amount means you pay at least that much or get a late fee added to your debt. The minimum amount can change based on how much you still owe.
Only paying the minimum payment will take a long time to pay your debt. Interest will be charged to your credit card when you only pay the minimum payment. Paying more than the minimum payment will pay off your debt faster.
Tool: Strategies to Avoid Getting in Debt
Use this tool to learn 10 strategies to avoid getting into debt.