Solutions 4 Financial Independence: 07/18/17

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BRIDGEPORT, W.Va (WDTV) - Question: "Is it better to pay off your entire monthly credit card balance, just the minimum, or somewhere in between?"

Answer: (John Halterman, Beacon Wealth Management) "We all use credit cards from time to time. We have emergencies, we have things happen, we need things. Let me make this very clear: never ever pay the minimum. Let me say that again, never ever just pay the minimum!

"You know the problem is that when you pay the minimum, you're leaving a balance. Unfortunately, that balance is being charged by the credit card companies.

"Typically that interest-rate is being compounded at a percentage rate of 18 or more percentage points. So, unfortunately that's how you dig yourself in a hole. I would never ever just pay the minimum. Try to pay that thing off as soon as possible.

"Again I get it, you have it, but the quicker you pay it off the better you are in terms of not only for yourself and credit card ratings, but also the credit card companies actually prefer it to because they give you better credit ratings."