Other than enrolling in a service to help reduce your debt, the easiest way to lower your credit card minimum payments is to avoid the interest penalties, over the limit charges, and late fees credit card companies love to assess. Not only will you avoid these superfluous and unnecessary charges, but your credit score will increase in the process. The following are some tips to consider in order to avoid ticky-tack charges or increased interest fees on your next monthly bill:

1. Have your accounts automatically paid each month

This is an effective way to make sure that your account is always on time, but generally is the most efficient route when your card is cut or closed and you aren’t incurring more debt on the balance. After all, how can you possibly have the monthly payment set automatically when the payment required varies each month? Also, the credit cards companies have caught onto this tactic and now switch your payment due date each month, so unless you give yourself ample time before that date you could be late anyway!

In light of number one, if you find that paying your credit cards automatically is impractical, this is your next best bet. Once you receive the statement each month, write the check and mail back the payment that day. Why wait? Remember to check the back of the bill for exact details about when they expect you to make your payment. Under the Fair Credit Billing Act , the credit card companies are allowed to wait five days before crediting your account for any payments received that do not follow the precise directions given on the back on the monthly statement. In other words, if you send your payment 4 days before the due date without following the exact instructions, the creditor is allowed to credit it the day after it was due, tacking on late fees and black marks on your credit report in the process.

Most credit card agreements have provisions saying that they can increase your interest rate at any time if you are a perceived as a greater credit risk than when you originally were extended the credit. That means you can see your rate adjusted on that “lifetime” zero percent interest card even if you have missed a payment on it. The infamous “universal default” clause says that a creditor can increase your rate if you miss a payment on another card. Even worse, something as small as using too much of the unsecured credit line on another card can be justification for increasing your interest charges. A good rule of thumb is to keep your credit utilization on each account below 50 percent. This will also help to ensure you don’t get caught with an “over the limit” charge.

Too busy or overextended that these tips won’t be of much help to you? Perhaps you should consider a debt reduction option like debt counseling or debt settlement. Other than the simplicity of one consolidated payment, these services vary extensively from one another. Credit counseling services involve lowering your interest rate and reorganizing your debt into one low, affordable monthly payment, whereas settlement programs can actually lower your credit card debt. Of the two, debt settlement or negotiation is a faster and less expensive way to reduce your bills. However, there are a number of downsides and risks associated with this type of debt management. Although both routes have potential effects to your credit¸ settlement tends to have a much more severe impact. On the bright side, debt negotiation programs can be completed in much less time, so the opportunity to rebuild your credit is more immediate.

To learn more about all the pros and cons of both options simply fill out a form and PayingPaul.Com will match you with a qualified company to answer your questions.