My parents swear up and down that if you only make a $1 payment to a credit card company they can’t count it as a late payment or send it to collections, since you did infact make a payment on time. Then allowing you to work on the snow ball effect to help get out of debt faster.
Is this an old rumor?
Ask your parents if they know what a minimum payment is
Listen to your parents when they tell you to eat your vegetables. Not this other.
subsequently enabling you to focus on the snowball effect to hasten debt repayment.
Because you would be paying a late fee for missing the minimum payment, which would offset any snowball effect benefits, you most assuredly would not be paying off debt faster.If enough time has passed before you made the correction, it would undoubtedly appear as a late payment on your credit report.
Gatherings? Perhaps it might delay the company’s decision to send it to collections, but I’m not sure.
Nope, depending on the total amount of cumulative 30-day late fees, it still goes to collections. 30, 60, 90, 180 = discharged
A general question. What happens if we pay the minimal amount due according to the balance on the statement, but it still goes to collections?
Wholly incorrect!
To be on time, you must make the minimum payment by the deadline.
What awful counsel you received. If you pay less than the minimum, you will incur late fees AND collection notifications, which can negatively affect your credit!
This is untrue. Well done for challenging it.
Yes, they are paying for it. Only the MINIMUM payment is needed. When you mention the snowball method, I’m not even sure what you mean. That essentially entails paying off your lowest debt levels first and disregarding interest rates.
They might be discussing medical debt. While not always the case, most places won’t send money to collections if it is paid to a hospital or clinic. Though they can always.