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If you’re deep in debt, your monthly statement can feel more like a threat than a tool. But learning how to read it, really read it, can help you spot mistakes, avoid unnecessary fees, and protect your credit while you work on reducing what you owe.
Here’s what to pay attention to:
1. 📆 Payment Due Date
Circle it. Highlight it. Hang it on your fridge.
Missing a due date can trigger:
- Late fees
- Penalty APR (a higher interest rate)
- A negative mark on your credit report
Even if you can’t pay the full amount, pay something before this date.
2. 💸 Minimum Payment Due (and How It's Calculated)
This is the smallest amount you’re required to pay to keep your account in good standing. But what a lot of people don’t realize is that this amount is usually designed to keep you in debt longer, not help you pay it off.
Here’s how it’s typically calculated:
- Credit cards often calculate your minimum payment as:
- 1% to 2% of your balance plus interest and any fees
- Or a flat amount, like $25—whichever is greater
Example:
If you owe $1,000 and your minimum payment is 2% + interest, your minimum might be around $40–$50. But only a small portion of that goes toward your actual balance, the rest covers interest.
3. 📊 APR (Annual Percentage Rate)
Your interest rate is key to understanding how fast your balance is growing. Check:
- Regular APR for purchases
- Cash advance APR (usually higher)
- Penalty APR if you’ve missed payments
If your APR is sky-high, you’re probably paying way more than you think.
4. 🧾 Fees
Many people don’t notice extra fees tucked into their statements. Look out for:
- Late fees
- Over-the-limit fees
- Returned payment fees
If you see one and it’s your first offense, call your lender and ask them to remove it. They might say yes!
5. 🔍 Transaction History
Scan your charges. Look for:
- Duplicate transactions
- Unknown merchants
- Old recurring charges you forgot about
You have a right to dispute fraudulent or incorrect charges, but there’s usually a time limit, don’t wait.
6. ⚖️ Your Current Balance
This number includes what you owe, plus any new interest and fees. If it’s going up each month, even when you’re paying, that’s a sign that interest is outpacing your payments.
🧭 What to Do If Fall Behind
If your balance is growing and your failing to make payments, it might be time to take a different route.
At Relief, we help users request savings on overdue debt, no calls, no paperwork, and no negotiating with collectors. Just clear, direct options to make your debt easier to deal with.
⚠️ Disclaimer: Relief does not provide financial advice. The information in this article is for educational purposes only and should not be considered a substitute for professional financial guidance. Please consult a certified financial planner or advisor for personalized support.
Links to external websites are provided for convenience and informational purposes only. Relief is not affiliated with these third-party sites and does not endorse or guarantee the accuracy of their content.
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