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serenityNOW's avatar

Will my monthly payment due change because I spent to much on my Credit Card? (More detail inside...)

Asked by serenityNOW (3631points) August 30th, 2011

I went two dollars over my credit limit on a crappy store credit card. I can only make the minimum payment due, each month, until, well, till I win the lottery. Anyway, my minimum payment for this month was $59; usually its around $25. Since I paid the $59, will it settle back down around the $25-mark, or… can someone lend me some money. All joking aside, though – how screwed am I?

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9 Answers

Coloma's avatar

Your payments go up according to the current charges. If you paid the card back down to it’s original balance that generated the $25 monthly payments, then yes, the balance of payments will be restored. If you charged $200 this month and only paid $59, the payments will remain elevated until the balance comes down again.

tedd's avatar

Did your interest rate go up? That is the part you need to be concerned about. If your monthly payment doubled, ok that sucks, but the long term ramifications are a lot lower (you’re still paying the same total amount of money, they just want it in bigger chunks). If your interest rate went up then you’re going to be paying a ton more money, and its in bigger chunks.

Honestly in the grand scheme of things if your payments are only $59, you are not remotely screwed. I would trade a kidney for the ability to swap some payments with you. I literally pay around $750 a month in student loans alone.

lillycoyote's avatar

Did you look at the breakdown of your minimum payment this month? It may have consisted of the normal 25$ minimum payment, plus an “over the limit” feel or penalty of maybe 25$ or 30$, they’ll get you with that one, and the rest might be repayment of the amount you are actually over to get you back within your limit. Is that possible?

Hawaii_Jake's avatar

Oh god, credit cards are such a trap. I have them and I hate them. Still, I use them.

I believe @lillycoyote may have hit the nail on the head. Check your statement. You can do that even if it’s online. See if there’s a penalty because of the over-limit use.

Good luck.

serenityNOW's avatar

Awesome; thanks guys. Honestly, I don’t know too much about interest rates. I’m so naive when it comes to credit cards. Also, I’ll track the breakdown.

@tedd – well, that sucks! $750; damn! I hate to say that puts my bill in perspective, but I guess it does.

Man, what an effin stress!

serenityNOW's avatar

@Hawaii_Jake – yes, a trap indeed. And I guess this is how they make money – or at least __more__ money. Uggh.

JLeslie's avatar

I would not call it a trap, they tell you your interest rate. Now with the new laws they even tell you how long it will take to pay off your balance even if you never charged another thing again, and how much it winds up costing you in the end. Unless you truly have an emergency, you should only be spending what you can afford, which means being able to pay off your credit card in full every month. I know you are not in that situation right now, but this is the time to get it under control. Stop buying things, just stop, except for necessary items. If you ever want to have money, real money, you have to stop spending it all.

Jeruba's avatar

Even if the monthly payment goes back down, I strongly urge you to squeeze out every bit extra you can for your payments and whittle that balance down just as fast as possible. The more you owe, the more you pay in interest.

You are not paying the same total amount of money because the interest you owe is computed on the balance, and the longer you maintain a balance, the more times you pay interest on the same amount—over and over—plus interest on any unpaid fees, extra charges, and interest added onto it.

Have you ever thought about how much you pay in real dollars for a $100 item by the time you shell out interest on that amount for months? You’re losing. Thought you had a bargain? Not any more.

As soon as you can, wean yourself off the credit card. Stick to cash. That way you buy only what you know you can pay for. The credit card is there for real emergencies—car breakdown, sudden travel in time of family crisis, place to stay if you’re stranded—but you keep your routine purchases and impulsive indulgences strictly within your means.

shirleylopez's avatar

I agree with @Jeruba, credit cards are for convenience and emergency. Therefore, if you are worried about interests, then better buy in cash more. Also, it is always better to pay the total amount due each month and not just the minimum. That is the best way to be heavily indebted. I’ve been there, so I’ve already learned my lesson. Never use your card if you don’t have the money to pay for your purchases when the bill comes. Hope my sharing is able to help. :-)

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