It is estimated that more than 40% of Americans carry a revolving balance on at least one credit card. This is an enormous number, and it is caused primarily by the security people feel in making minimum monthly payments. When you charge money to your credit card, you are only required to make a small monthly payment to keep the debt from entering into collections, which means that a purchase made in 1995 might still be carried on a credit card in 2006.

Under pressure from the U.S. government, banks are increasing the minimum monthly payments. This can mean both good news and bad news for consumers, though it is supposed to be designed to assist cardholders with paying off debt.

In the recent past, minimum monthly payments have been between 2% and 3% of the total balance owed on the card. This means that 97-98% does not immediately have to be paid, and the balance continues to accrue interest as time goes on. Since some credit card APR