Question

Regardless of which method you choose, why is it important to pay at least the monthly minimum payment on every debt? Your credit history is erased and you have a "thin file". Federal and state governments can increase your taxes if you don't make the minimum payment. You will have to pay fees and your credit score will decrease. Your credit score will increase by at least 30 points.

Answer 1

You will have to pay fees and your credit score will decrease.

Step-by-step explanation:

If you do not make at lest the minimum payments for all your outstanding debts, the lender will probably charge you late payment fees (which can be very expensive), and your credit score will certainly decrease. This will end up increasing your future credit costs and hurt your ability to access them.