Is there any truth to if you pay just $5.00 on your credit card bills that they can not turn you into a collections agency?
Lynette from Ann Arbor, Michigan
No! There is no truth to that. You must pay the minimum amount set on your statement or an agreed to amount, get this in writing. (12/10/2008)
The credit card bill tells you the minimum that you have to pay. Depending how big your debt is and paying the minimum amount can stretch out your credit debt for years. For example, if you owe $15,000 the minimum payment is $375, it would take 423 months to pay off your debt providing you did not make any further charges. You can go to www.bankrate.com to figure out how long it would take to pay off your debt at minimum payments. (12/11/2008)
I would advise you to buy a book entitled "How to Settle Your Debts Without Committing Financial Suicide" by Norman H. Perlmutter. You can get it on Amazon for $12.89. (12/11/2008)
By Patty Lynn
Dave Ramsey's book and website offer counseling on this issue. (12/11/2008)
You definitely need to pay the minimum amount due on credit card or loan payments! Even doing that is going to affect your credit in a negative way if you have a high amount due.
The law about a five dollar minimum payment pertains/pertained only to medical bills and that law may have even changed over the past few year!
I was paying $100.00 a month on a hospital bill to Mayo and they turned me over to a credit agency, with no warning. (12/13/2008)
I pay at least 10% of my total current credit card balance every month. I see movement towards paying my debt. (01/31/2009)
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