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How I drastically reduced my credit card minimum payments from $500/mo to $200/mo

Updated: Dec 14, 2022

… and boosted my credit score at the same time! Today, I’m sharing with you how I took our credit card minimum payments from $560 ($26k balance) to $218 ($23k balance) in 6 MONTHS! (Screenshot below of where we tracked our progress.) AND later that year, my credit score shot up to over 800! Please note: This is educational information, not advice. Your finances are personal and your situation may be different. Fun fact: Most credit card companies’ minimum payments are 1% or 2% of the balance plus interest - they'll tell you if you ask. Example: If I’m paying $300 in interest on a $10,000 balance, then my minimum payment will be $400 ((10,000*0.01) + 300). So… if you’re wondering if you should consolidate or balance transfer to a 0% card, then I’d say YES! The minimum payment would drop to $100! If it reduces your monthly minimum payments and/or decreases the amount you’re paying in interest, I’d say that’s an instant win! That’s exactly how I got our $500+ payments down to $200/month. I did already have a credit card account open that had a $0 balance with US Bank. At the time, my credit score was in the 700s and they offered me a 0% balance transfer option. The cool thing about US Bank is that they’ll send you actual checks for the 0% balance transfer option instead of having to submit balance transfer information with the other credit card’s account information. This just makes things easier, in my opinion. Questions? Skeptical? Let's discuss it! Just hit reply to this email. Have a great day! -Ashley

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