Credit Card Balance Not Going Down? Here are 4 Reasons Why!

Debt management can be extremely tricky if you don’t have any know-how of the financial details. But there is a philosophy behind it for every lay-person. Every debt repayment improves the financial health and gets your credit score back on track. However, often the supplies situation doesn’t correlate with reality. Many people pay their monthly dues religiously and abide by all the budgetary constraints they have set for themselves but in the end, there is no visible improvement in the credit score.  It demoralizes the debtor and they give in to the mountain of debt instead of chipping it away bit by bit. Let’s analyze the reasoning behind this financial behavior.

High Mark-up Repayment

The payments that you deliver to the bank or credit companies every month contain a portion of your borrowed amount and the markup of that institution respectively. As the interest can cause a large portion of monthly payments, you need to give bigger payments so you can attack the principal amount proactively.

Additional Liability Creation

Fighting fire with fire is a curious strategy but it is not one that is applicable in this case. You can’t fight debt with more debt. Stop purchasing with credit and only use cash. This will put everything in perspective.

Lowest Repayments

It is tempting to just do the bare minimum required to get rid of your debts, but in the long-term, this will not be helpful to you at all. Pay as much as you can towards one debt and get rid of it. Pick another debt after that and move on towards that. This is how you make progress.


These are all reasons and strategies that will clear your debt financials for you and increase the score. Explore Solution2Debts for more sound financial advice because we truly care!

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