Making only the minimum payments on credit card debt is a high interest trap. When consumers are having financial problems, many float credit card balances making only the minimum payments. While this may keep the card out of default status, the consumer will eventually end up paying back much more than they actually owe.
With a $5000 balance on a credit card with a 15% interest rate, making only minimum payments will take the consumer 10 years to pay off the debt with interest payments of $2180. This means for the $5000 borrowed from the credit card company the consumer pays back $7180. If you are a consumer making only minimum payments on your credit card debt, contact a qualified debt settlement attorney. A qualified debt settlement attorney can likely negotiate on your behalf for a reduced balance on what the creditor claims is due.