 TITLE: What Happens If You Only Pay the Minimum on Your Credit Card? CONTENT: What to Do if You Can't Pay Off Your Balance in Full Every Month\n----------------------------------------------------------------\nIt's important to at least pay the minimum each month to avoid late fees, penalty APRs and to preserve your credit rating. If possible, you want to pay the balance in full every month to keep your utilization low and save a bundle on interest and possibly help lift your credit score. But what if you're strapped for cash and can't pay the entire balance in full?\nPay as much as you can comfortably afford to get the balance down. This allows you to get out of debt faster and free up funds to meet other financial goals. Struggling to come up with money to pay more than the minimum on your credit cards each month? Creating a budget can help you get a handle on your spending. Cut or reduce your expenses and put the extra cash towards your credit cards. You might also try finding other ways to earn extra income, like getting a part-time job or exploring freelance opportunities.\nChoosing a credit card repayment strategy will also help you prioritize which credit cards to aggressively pay down first. For example, the avalanche method of paying down your cards has you focus on the accounts with the highest interest rates. You can also follow the snowball method, which calls for you to target the card with the lowest balance first.\nIf funds are tight and you are having trouble keeping up with the minimum payments, call your credit card issuer to discuss your situation. They may offer you a payment arrangement if you're going through a rough financial patch. Some also have hardship programs that are available to financially distressed card holders.\nCredit counseling is another option for those having trouble making payments. This service is usually provided for free by nonprofit organizations that teach consumers sound money management habits. They can also help you create a debt management plan to pay down your balances. Under this arrangement, you will make one payment to the credit counseling agency each month and they will distribute funds to the creditors after negotiating more favorable account terms on your behalf, like lower interest rates, waived fees or payment extensions. END