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TAG | credit card company

Janie asked:

I reached my credit limit months ago, but every month I make sure to pay at least my minimum payment. I thought that making at least my minimum payment would help me avoid paying interest. I even have automatic payments setup so I’m aways on time. But I recently found that a finance charge was deducted from my account. How do I avoid another?

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    I spoke to my credit card company and gave me two options. They can let me close the account and offer low APR so I can pay it off in 5 years. By doing so, my minimum monthly payment goes down from 400$ to 0. They also advise me that I can settle the total amount of the debt in that case the debt can be reduced ~30% however they warned me that my credit score can be screwed. Does anyone know how much it will affect my credit score? I have 3 credit cards with that bank and does it mean I will have three settlement?

    THanks,


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