Part of using a credit card responsibly includes knowing exactly how the monthly payments are determined and whether they are manageable. However, this can be difficult. Thus, it is no surprise that millions of Americans are facing credit card debt. In fact, the average American household has at least $10,000 in credit card debt. Although this can put you in a difficult situation, there is help.
Handling Your Minimum Payments
Ultimately, each credit card company is able to decide how their minimum monthly credit card payments are determined. However, there are some trends that you should know. Just a few years ago, the majority of large credit card companies would charge a monthly payment of 2% of the balance. However, as the economy changed, so did the way minimum payments are calculated. Today, it is standard to determine a monthly payment by taking a specific percent of the balance—around 1%—then adding the finance charge to that number.
If you are having trouble making your minimum payments, you may be able to negotiate with your credit company to establish fair and reasonable monthly payments. However, if you seem to be losing grip of your financial situation, bankruptcy may be your best option.
Filing for bankruptcy has helped thousands of people recover from overwhelming debt. Filing can put you on the path to a more secure financial future. Contact the experienced Milwaukee bankruptcy lawyers of the DeLadurantey Law Office, LLC, at 414-377-0518 for more information.