How to Make the Minimum Payment on Credit Card Debt

Credit cards can be a double-edged sword: they are wonderful to have when cash is short, but it's too easy to rack up the debt and the interest rates make it difficult to pay off each month.

Credit card companies know this and that's why your credit card bills each month ask for a minimum payment that's merely a fraction of what you owe. It's possible to pay the minimum payment each month and maintain your good credit, it's all about balance.

Instructions

1

Determine your payment before the bills comes each month. If you're worried about having enough to afford the payment, then it's important to figure out how much you'll have to pay to make the minimum payment. Most credit card companies set their minimum payments at 1 percent or 2 percent of the balance owed. That means if you owe $1,000 on your credit card then your minimum payment will be as low as $10 or $20 per month. Check your previous credit card bills to calculate the exact percentage of your minimum payment.

2

Set aside your minimum payment. Once you've determined how much you'll have to pay, then it's easy to set aside that amount and reserve it to pay your minimum payments. You can put this amount in a savings account, keep it in your sock drawer or simply know it's in your account. Whatever you do, make sure you don't spend it so you won't have to worry about making the payment.

3

Automate your credit card payment. The easiest way to make your credit card minimum payment is to set up your online banking or credit card account to automatically deduct the minimum payment before the due date. Say your minimum payment is due on the 10th of each month. Set up your payment so that it's credited to your account at least one or two days before it's due, that way you'll never have to worry about a late payment and a late fee.

4

Mail the payment early. If you can't automate your payment, then it's best to send your payment on a set day each month to make sure it gets there by the due date. Mark the day on your calendar and send out the payment on that date. Whatever the date is, make sure you give the payment at least seven to 10 business days to arrive at your credit card company.