If you can only afford to pay the minimum amount due on a credit card, you are almost guaranteed your debt will not be paid off for at least a decade.  In most cases if you only pay the minimum due, you may never pay off your debt.  The minimum payment due is a calculated percentage of your current balance which is usually in the range of 1% to 4%.  By only paying the minimum amount due each month, approximately half of that minimum payment goes to pay interest.  Although your minimum payment reduces as your current balance decreases, this process takes an extremely long amount of time due to compound interest. Compound interest is paid on the original principal and on the accumulated past interest. A credit card debt settlement programs gets rid of your debt for a reduced amount.

 

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