Best Answer

Charge offs will RUIN your credit for a minimum of seven years. Keep paying the minimum until you can see a clear way to put the money together to pay more than the minimums. If you cannot see a clear way to get more income money then you would be better off declaring bankruptcy and starting over again in a few years. Bankruptcy will ruin your credit too, but without having to make lots of meaningless credit card payments that will never reduce your debt.

User Avatar

Wiki User

โˆ™ 2006-04-04 10:34:55
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: If you have very high credit card debt as well as other debt and you can only pay the minimum every month would it be smart to concentrate on paying one off at a time even if it means charge offs?
Write your answer...
Sign up for more answers

Registered users can ask questions, leave comments, and earn points for submitting new answers.

Already have an account? Log in

Related questions

Is there a minimum finance charge on the master card?

Minimum Finance charges have nothing to do with MasterCard and everything to do with your Financial Institution. Example of Financial Institution "US Bank". Any Credit Card, regardless of type, is going to have a minimum finance charge. You can find out how much the charge is by reading your Card member agreement. You can avoid interest or the minimum finance charge by paying the full balance on you credit card bill.

If you pay less than minimum amount on credit card what happens?

You do not want to waste you time paying less than the minimum on your credit card. Paying less than the minimum is like paying the bill late. It won't count. For example, if they ask for a minimum payment of $10 and you pay only $9 the credit card company will bill you a late charge then your finance charges will go up by the following month! This will cause you unnecessary problems. Avoid this by always paying the minimum at least. Do not waste your time paying a bill if it's not the right amount. Pay at least the minimum amount. Always! If the credit card asks you for a minimum payment of $10 and you only pay $9.99 , the payment will not count. You will create problems for yourself! What happens is they will add a late charge to your card. It's like not paying at all. Also, they can add higher finance charges! avoid this for yourself.

Can you legally charge a fee to clients paying with a credit card?


Is paying the minimal on credit cards considered a sign of credit trouble?

Paying the minimum amount due on credit card is not necessarily a sign of credit trouble because it actually makes the credit card account current.

What are strategies to repair my credit rating?

Don't get yourself into any more debt! Focus on paying off your bills and doing everything you can to stay ahead and keep moving forward! Always pay your credit card in full...never just the minimum. Credit card companies charge you interest on the full amount, even if you pay the minimum.

Why is it unwise to make the minimum payment on your credit card?

Paying the minimum each month means you'll take longer to pay it off, meaning you're paying more interest.

Will paying off charge offs results in a higher credit score?

Yes, your credit score will impove if you payoff charge offs, if the lender or collector reports the payment to the credit reporting agency.

Can your credit be damaged by paying less than what is due on time?

Absolutely. It won't be hurt as badly as not paying, but your credit report usually shows a status that reads "pays as agreed." If you're paying less than the minimum amount due each month, you're not paying as agreed and your credit can get dinged.

Why is it unwise to pay minimum credit on your credit card?

Paying only the minimum due on your credit card balance maximizes the amount of interest you will pay to the credit card company. This is why it is better to pay as much of your balance as you can each billing cycle - it saves you money by reducing the amount of interest you pay. Also, depending on the terms of your credit card agreement, paying the minimum can actually make your principal balance increase. The minimum payment may not cover the amount of interest due.

What builds credit faster paying the monthy minimum or in full?

Paying your bills in full is always better than paying the minimum monthly payment. When you are paying your minimum monthly payment your balance continues to grow because you continue to shop and the interest continues to be add-on and it will take years and years to pay off. (by law, the bill will show how long it will take to pay your bills, if you are paying the minimum monthly payment). That is how people get overly in debt and high balances affect your credit score. my advise is: treat credit cards as a replacement of cash, (to take advantage of the rewards/benefits of the card), NOT AS A FAST LOAN.

On the not paying for unsecured credit cardsWhat if you do not pay themAnd you and your wife are now on disabilitywhat can they doAccept charge off and ruin your credit?


What is the difference between a charge card and a credit card?

Charge card and credit card offers you a facility to spend a certain amount and at the end of the month you can pay a specific minimum amount and revolve your credit for the next month by paying some interest on the remaining amount that is still to be paid and remains out standing. Charge card offers you a facility that the amount spent will be directly debited from your account and you can not revolve the credit. Charge card is a facility provider which is given to their costomer to make their payment behalf of the costumer

What are some tips on credit card bill payoff?

Some tips on paying off credit card bills include paying more than the monthly minimum, setting a budget, and consolidating debt. Experts agree that paying off the credit card with the highest interest rate is a good first goal.

How does over paying your credit card affect your credit score?

There is no such thing as "over paying" a credit card unless you are paying more than the total amount owed. If you mean to pay more than the minimum, it is always a good idea to do so since most credit card minimum payments are stretched over many years. (and that's if you don't use the card during that time!) Also, if you continue to pay more than your minimum and your total balance decreases (and all other things are the same) your credit score will improve because you are "paying off your debt" and you are able to handle the debt you have. If you pay more than the minimum but your balance doesn't decrease you score may still improve, but not as much.

How do you reestablish your credit after a foreclosure?

Normally it takes 7 years for a foreclosure to expunge from your credit report. However it that meantime, paying bills early, paying more then minimum on credit card bills. Just managing your money in general. Slowly over time it will improve.

Can paying off your credit card balance in full every month hurt your credit?

Your credit report, credit rating and credit scores do not reflect any difference in paying the full amount on a credit card account or paying the minimum amount. What is tracked and recorded on your credit report is whether or not you pay the account ON TIME. It is a completely different factor to your "bottom line" in the amount of interest you pay. so consider all the facts before you decide how much to send in.

What factors may lower your credit score when you have a credit card?

not paying minimum amount duelack of credit historygetting another new credit cardapplying for a loankeeping a high balance on credit cards compared to their credit limitsetc.

Minimum Payment, Minimum Rewards?

Using credit cards is essential for building your credit, but mishandling them can cost you a lot of money. You can wind up paying a large amount of interest. That can lead to a mountain of debt. To avoid these issues, here are some tips on paying your credit card bills. When it comes to paying credit card bills, it is best to pay your balance in full. Most credit cards have a grace period for purchases. This is usually around 25 days. If you pay your balance in full every month within that period, you will never have to pay interest. This is also good for your credit report. If you pay your balance in full every month before the bank reports, you will always have a zero balance on your credit report. That will boost your score significantly. If you can't pay your balance in full, always pay more than the minimum. The minimum payment is designed so that the credit card company can capitalize on your interest rate. Sure, paying the minimum keeps you in good standing. However, it also means you are paying lots of interest. Always pay as much as you can so that you minimize how much interest you pay.

Can you dump credit card debt without paying entire amount?

No you are still required to pay them the minimum due each month.

What is the risk of using a credit card?

risks is when you are not paying on time. make sure you pay your credit cards not lower than your minimum due. it is always better to pay it in full for you also to increase your credit limit.

Can a credit card company sue for paying less than the minimum?

Yes, a card company can sue you for paying less than the minimum amount because you are violating the terms of the agreement. They will not sue you unless you are very far behind or owe a lot of money.

How do I jounal the FOB shipping point?

FOB shipping means the purchaser is paying the shipping charges. If you are the seller debit the charge to the buyer and credit the charge to the shipping company.

Will not paying for items that you won on Ebay affect your credit score if anything?

No it won't affect your credit report unless you happened to charge the item to a credit card and not pay for the item once charged to the card.

how can i get help paying my credit cards and hospital bills?

help paying credit cards

Of these allows consumers to pay for purchases at a later date debit card credit card ATM card checking account?

A credit card allows you to pay for purchases at a later date. Credit card balances have a minimum payment due, but by paying more than the minimum, you save on interest payments.