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Should I Double My Minimum Payment? Comments

  • By Sasha Miller
  • June 27, 2011

How Much?The other night I was paying my bills and I was about to make the minimum payment on my card.

The only problem is that you’re supposed to pay more than the minimum if you want to get rid of your balance. But how much are you supposed to pay?

The standard advice you often hear is to pay at least double the minimum. Well, with a balance of $6,125, at 9% interest, and a minimum payment of $153, I couldn’t write a check for $306!

But I ran some numbers using Bankrate’s handy calculator, and here’s what I came up with:

Payment To pay balance Interest
$153 180 months $2,483
$200 85 months $860
$300 23 months $548

Doubling my payment would be the ideal way to get this credit monkey off my back.

But look at the huge difference it makes to add just $50 to my payment! That’s good enough for me.

And as a single mom, I’m learning, “good enough” is often great.

Take it easy. How do you bend the rules of personal finance—and still make progress?

Sasha Miller is a DailyWorth contributor, writing about the financial side of starting over as a single mom of two.

Tagged in: Budgeting
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