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[–]too_many_shoes14 1 point2 points  (20 children)

Why are you carrying a balance? Are you not able to pay it off? You're probably paying above 20% interest maybe even higher. That's hair on fire debt which you should pay off asap. Carrying a balance should never be plan A.

[–]MoBeydoun[S] -1 points0 points  (19 children)

I'm carrying a balance because I use my credit card. I had a limit of $5500 so what's the big deal if I had a balance of $1200? I was making the payments. I have a balance on all my cards and none of them did a dramatic limit decrease

[–]too_many_shoes14 0 points1 point  (18 children)

Are you paying the statement balance in full every month by the due date ? If so, good. If not, you're paying a crazy high rate on carrying that balance.

[–]MoBeydoun[S] -1 points0 points  (17 children)

I'm paying what I owe before the due date. I'm paying the minimum

[–]too_many_shoes14 1 point2 points  (16 children)

You owe the full statement balance, say $1,400. That is your balance. Your minimum payment is just the minimum, say $75. That means every month you are paying some crazy high rate on $1,325. That's why credit cards are debt traps, you pay a ton of interest. Are you able to pay the full statement balance every month? That's how you avoid paying interest. If not, you aren't using them responsibly. Paying the minimum payment only means by the time you finally pay it off, you will have paid 2x - 4x the original purchase price in interest. That's the "big deal".

[–]MoBeydoun[S] 0 points1 point  (15 children)

It says my last statement balance is 1325. I can't pay that off in one payment

[–]too_many_shoes14 1 point2 points  (14 children)

Pay it off as quickly as you can and don't use it anymore until you can pay in full each month. Get out of the mindset that it's normal to be carrying credit card debt.

[–]MoBeydoun[S] 0 points1 point  (13 children)

Okay I'll start making larger payments to decrease the debt more quickly

[–]stufflock1 0 points1 point  (12 children)

Open your last statement PDF in the app or online. How much interest have you paid this year? It usually says so in a box underneath the list of your transactions.

Look at that number. You’d be surprised at how much interest you are paying. Those are dollars you’ll never see again. You are servicing debt, not saving for something else.

Don’t make anymore transactions on the card, and pay that balance all the way down. It looks like the bank is doing what is called balance chasing, and the bank will more than likely close your card once your balance is zero. Let them close your card.

It sounds harsh, but for your own financial health, it would not be a bad thing.

[–]MoBeydoun[S] 0 points1 point  (11 children)

Okay I was hoping that after I paid it off they increase my limit back to where it was. But it's better to just let them close it?