How it works
Each month interest of APR ÷ 12 is added to the balance, then your payment is subtracted. We repeat this until the balance reaches zero, assuming you stop using the card.
Paying only a little more than the interest stretches the debt for years. On a 5,000 balance at 22% APR, a 120 payment takes almost 7 years and costs about 4,500 in interest; 200 a month clears it in under 3 years for about 1,750.
- Pay the card with the highest APR first (the avalanche method) to save the most interest.
- A 0% balance transfer can help if you can clear the balance before the offer ends.
- Minimum payments are designed to keep you paying interest for as long as possible.