Credit card minimum payments are typically the month's interest plus just 1% of your balance. That formula is designed to be affordable — and to keep you paying for decades. Here's what it actually does to three common balances at a 22% APR:
| Balance | Minimum payments | Interest at minimums | Fixed payment instead | Time & interest with fixed |
|---|---|---|---|---|
| $2,000.00 | 11 yr 7 mo | $2,599.80 | $100.00/mo | 2 yr 2 mo · $514.29 |
| $5,000.00 | 19 yr 2 mo | $8,099.77 | $200.00/mo | 2 yr 10 mo · $1,749.88 |
| $10,000.00 | 24 yr 11 mo | $17,266.44 | $400.00/mo | 2 yr 10 mo · $3,499.76 |
Why minimums stretch forever
Because the payment is a percentage of the balance, it shrinks as you make progress — a $5,000 balance starts with a ~$142 minimum but is down to $50-ish payments years later, barely denting what's left. A fixed payment (even the same $142, just never decreasing) breaks the spiral: the gap between your payment and the accruing interest widens every month instead of narrowing.
Three ways out
- Fix your payment at today's minimum — costs nothing extra now and typically cuts the payoff time by more than half.
- Pay a round number you can defend — model yours with the card payoff calculator.
- Re-rate the debt — a 0% balance transfer or consolidation loan redirects interest dollars at principal.