Just in time for the holidays, more and more credit card companies are increasing the minimum monthly payments on credit card bills. Of course, that is both good news, and bad news for credit card users.
Logic would dictate that a higher minimum monthly payment would mean that more of the payment would be applied to principal, thus decreasing the amount of the debt over time. This is what the government had in mind when they imposed the requirement that credit card companies boost their minimum monthly payments by the end of December.
Of course, consumers who are only able to make the minimum monthly payments are going to be surprised to learn that their monthly payments may double. You heard me correctly: Double. According to the Billings Gazette, a $200 minimum payment could double to $400.
As you are approaching the holidays, plan, prepare, and be prepared. If you can, avoid the plastic. The bills that come after the New Year could be a most unpleasant surprise.
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