Your credit card company is completely happy with you paying only your minimum payment. Why? It is because a majority of your payment is going toward interest while just a small portion of your payment is actually paying down the principle balance. Therefore, paying the minimum on a month to month basis will keep you in debt longer and will likely have a negative impact to your credit profile and will take you a lot longer to pay off your debt.
Why is this a healthy way to rebound from debt?
Your credit profile will finally show account balances down to zero within 1-4 years, your credit utilization will decrease to help you raise your credit score rather than you making the minimum payments each month which impacts your credit profile negatively.
Save money. Reach goals. Live better.
