Credit cards have minimum payments and, if consumers do not meet those minimum payments, the creditors may start calling. Most credit card agreements require payment of the minimum amount due on a monthly basis. So, consumers that make below-minimum payments are subject to negative actions from the bank. These can include card cancellation, creditor calls, and reports to the credit bureaus.

The largest concern for consumers making below-minimum payments are the fines. Many credit card companies charge a $29 to $39 monthly fine for not paying the minimum on time, and this amount can be more than the consumer’s below-minimum payment! This means that each monthly balance could move higher and higher with no end in sight – something called negative amortization.

The best solution is to rework monthly budgets to come up with enough money to pay more than the minimum. If this is not possible, it may be wise to call up the credit card company and see if the will negotiate at all on the amount due or rate. And finally, if none of this works, it could be wise to seek help with a debt settlement company if the amount is high enough to justify it.