Erasing Our Debt

I did some research and did a little reading on my statement for my credit card. There was a little section that explained why my minimum payment is $10.

Because of the careful way you manage your account the minimum payment due on this statement has been reduced to $10.00. If you prefer to pay your regular minimum amount due, it is $73.59. Please remember finance charges will accrue as usual. Thank you.

So it says I manage my account carefully. If you read between the lines, that means that I have hardly charged anything to my account lately and while even though I did last month for medical reasons, I immediately made a payment from my savings account. Also another hidden meaning is that they want me to think good about myself and my ability to manage my account oh-so carefully so that I will think long and hard about using this card to make purchases for the Christmas season.

I am actually thinking about transferring this balance within the next 4-6 months and then calling them back to see if I can get a good balance transfer offer.

Labels: debt, payment

// posted by Ryan @ 10:26 PM 1 Comments Links to this post

So one of my credit card statements came out today. I was checking it online and noticed my minimum payment was only $10. The balance is just a shade over $3,900. So my minimum payment is less than 0.3%.

Last month my minimum payment was just over $69 with a balance of $3,835, which is just about 1.8%. That seems reasonable.

Surely there was some kind of glitch in the system. They also increased my credit limit by $800. Maybe this low payment is a teaser to get people to spend more in anticipation for the upcoming holiday season.

Since I'm working the debt snowball method, I paid as little as possible. Since the payment wouldn't even cover the interest they added, I just added that to the $10 they requested.

Does anyone know why they would have lowered the minimum payment so low?

Labels: debt, minimum, payment

// posted by Ryan @ 9:49 AM 1 Comments Links to this post