Financial Strategist Gives Straight Talk on the Perils of Only Paying Minimum Payments on Credit Cards

LOS ANGELES, CA: Jerri Simpson, AKA “The Debt Lady” (, has released a list of advice on paying credit cards, and specifically on the dangers of only paying minimum payments on the cards.

Ms. Simpson stated:

“Credit card companies don’t really want you to pay more than the minimums on your credit cards. That’s how they make all of their money.  They have devised a system that will keep you a customer of theirs for your entire life – if you chose to play their game of making minimum payments. It’s ingenious, actually, and quite brilliant as a business plan. But what does it mean for you? It means that you’re going to be paying off those same balances well into your golden years.”

“Let me give you a few examples. First we’ll take a higher credit card balance of $14,000 at an interest rate of 13.75%. (This information is being taken off an existing credit card statement). The minimum monthly payment on the bill is $179; the interest accrued for the same month is $178.73. So you do the math – .27 goes to principle that month. With an annual fee of $50, obviously this account will only go up, not down. You will literally never pay this particular credit card in full, and the bank has the pleasure of having you as a customer for life.”

“Let’s take a different scenario. Say you’re that 20-year old from our example above, and you want a new computer. You put money aside every week from your paycheck, and within three months you go into your local electronics store and pay cash. Buy your clothes at the outlet malls or the stores that carry department store brands at reduced prices. If you’re hooked on department stores wait for the sales, and only buy if you have the cash to pay for the clothes you want. Keep your car maintained regularly and pay cash for repairs. This is the best way to avoid those big, scary repair bills. And buy those DVDs online only when you can afford to pay cash for them. If you know where to shop, you’ll find they’re much cheaper, and you won’t even have to pay shipping. If you made these changes, you would literally save yourself $38,028 plus any late charges, over-limit charges, or the additional charges that you get hit with when your limit comes down. Pretty eye-opening, isn’t it?”

The full article can be seen at:

Jerri Simpson, “The Debt Lady”, has over 30 years experience in the financial industry, from starting with hands on experience at a bill collection agency to opening her own debt settlement company with over 2,500 clients throughout the US. She sees clients every day, helping them solve their financial problems, manage debt and work with the ever-changing lending industry. “Paper or Plastic: A Guide To Financial Health And Prosperity” is her first book, teaching financial management solutions to the average consumer. Her articles on finance can be viewed here: