Why Minimum Payments Keep You in Debt for Years

Published June 2026 · 4 min read

Credit card minimum payments are typically 2% of your balance. At that rate, a USD 5,000 balance at 22% APR takes over 20 years to pay off and costs more than USD 6,000 in interest. The minimum payment formula is designed to maximize the bank's interest revenue — not to help you get out of debt.

Paying just USD 50 extra per month can cut years off your timeline. Use our Minimum Payment Calculator to see your own scary numbers — then see how much faster extra payments eliminate your debt.