Here are some some strategies to help you figure out how much to pay on your credit cards to at least keep them in good standing. After 30 days with no payment, your delinquency is reported to the credit bureaus, added to your credit report, and factored into your credit score. A single late payment in your entire credit history might not do much damage, but the more delinquencies you have, the worse the effect on your credit score will be. These delinquent bills will stay on your credit report and hurt your credit score until you’ve paid off the past due balance. If you have any extra money in your budget after making the minimum payments on all your cards, put it all towards bringing your accounts current. Once your account is 180 days past due, your creditor might charge-off your account, refer it to collections, or both. At that point, you’ll lose your purchasing ability and you’ll no longer have the option of making monthly payments on your credit card. After paying the minimum and getting caught up on past due balances, put your leftover funds toward reducing maxed-out balances. Lowering your balance also will help your credit score. A good rule of thumb is to keep the total of your balances to no more than 30% of your combined credit limits. After you’ve met the minimum payment on your other accounts, put a lump sum payment toward your balance with the highest interest rate until it’s paid off. Of course, if your goal is to get out of debt completely, you should evaluate your credit card interest rates along with the interest rates of your other debt.
