Why are minimum payments a trap?

They're calculated to maximize interest paid to the bank, not help you pay off debt quickly.

How is minimum payment calculated?

Typically 1-3% of balance plus interest and fees, keeping you in debt for years.

How long to pay off $5K with minimums?

At 24% APR with minimum payments: 16+ years and $7,240 in interest.

Best way to pay off faster?

Pay as much above minimum as possible. Even $100 extra cuts years off your debt.

What percentage of minimum payment goes to interest?

About 75-80% of minimum payments go to interest, not principal. This is why balances barely decrease with minimums.

Should I pay more than the minimum?

Absolutely yes. Paying even $50-100 more per month can cut years off your debt and save thousands in interest.

What happens if I only pay the minimum?

You'll stay in debt for 15+ years, pay 2-3x your original balance in interest, and barely reduce your principal.

Is it better to pay off one card or multiple?

Pay minimums on all cards, then put extra money toward the highest-interest card first (debt avalanche method).

Loading Credit Card Minimums Are a Trap: The Math They Don't Show You

Credit Card Minimums Are a Trap: The Math They Don't Show You

I paid $847 in minimum payments and my balance dropped by $37. Here's the brutal math behind credit card minimums and the free calculator that showed me the way out.

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