National Debt Relief Talks about Credit Card Interest Payment
Phoenix, AZ (PRWEB) April 09, 2016 -- National Debt Relief recently explained in an article published on March 5, 2016 how the credit card payments of consumers seems to carry high interest amounts. The article, titled “Why Are Half My Monthly Credit Card Payments Going Towards Interest?”, aims to dissect consumer attitude with regards to their credit card payments to see the reason why interest amounts are getting bigger.
The article wishes to help consumers who are seemingly trapped with big credit cards payments. On top of this, they are barely making a dent with their principal amount because majority of the payment they are sending in simply goes to interest payment. It just keeps getting bigger and bigger over time.
The number one culprit that leads to high interest payment is that there are consumers who are content in sending out only the minimum payments on their card. Once they receive their monthly billing statement, they go straight to that minimum amount they can make in order to keep their account current.
Sending in only the minimum account allows the lenders to start putting in various fees and interest on the succeeding bill. This is a case of compound interest hurting the consumer rather than being on their side and helping them strengthen their financial standing. Sending only the minimum payment makes consumers pay interest on top of interest.
The article explains that once interest is added onto the succeeding bill and only the minimum payment is made, that interest then becomes part of the principal payment for the next billing cycle where interest will again be assessed. Lenders would also prioritize collecting interest payment first rather than collecting on the original principal amount.
To read the full article, click https://www.nationaldebtrelief.com/why-are-half-my-monthly-credit-card-payments-going-towards-interest/
Paul Ritz, National Debt Relief, http://www.nationaldebtrelief.com/, +1 888-703-4948, [email protected]
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