Simply put, interest is the answer. Any unpaid balances will incur interest, and the longer they remain unpaid, the more interest will accrue. When you make the minimum payment each month, a large portion of that could just be interest on the entire debt because interest is calculated based on the amount owed. Because of this, it might take a while to finally pay off the debt in full, and as more purchases are made using the credit card, it can only take longer, if it ever does.
So what is the answer? Establishing a financial plan, or budget, is one of the most helpful actions a person can take when trying to pay off credit card debt, and even before making any purchases with a credit card. Following a budget entails accounting for all resources and allocating them appropriately. This aids in limiting spending, which, in turn, aids in limiting what and when is charged to a credit card. All expenses are listed separately in a budget, so you can see where you can find extra money to use toward any credit card debt repayment.
There are many ways to help someone in debt if they still need assistance after creating a budget. To consolidate debts and create payment schedules, credit counselors and debt consolidation businesses are available.
Credit card companies frequently agree to negotiate a lower interest rate or transfer a credit balance to a card with a lower interest rate. Working with credit companies can frequently result in a few helpful ways to aid in debt repayment, so it never hurts to ask.