4. Paying the Minimum with Credit

Another small and related mistake is relying on minimum payments to pay down a credit balance. If your APR is anywhere over 24% and your balance over $700 and you pay only the minimum, only a small fraction of that payment will actually go towards paying down the debt – a big chunk of it will be paying the interest. Make sure you pay extra money to bring down your balance whenever you can.

The Fee Cycle