Why the Minimum Credit Card Payment Keeps You Stuck
See how interest absorbs most of a minimum payment.
Start here
If you ever wondered why your balance barely moves, you are not alone.
The belief vs the reality
The common belief is making the minimum means you are fine. The reality is most of the payment can go to interest.
Translate it into monthly numbers
- Split the payment into interest and principal each month.
- Compare minimum payment time to a slightly higher payment.
- See how many months that small change saves.
Mental model
Payment minus interest equals real progress.
Moment of clarity
Here is what actually matters: how much of the payment reduces principal.
What to do next
See how a small extra payment changes your payoff timeline.
Related calculators
This is where guessing stops and numbers start.
Key sections in this guide
Break a payment into interest and principal
- Minimum payments are often mostly interest at the start.
Compare minimum payment to a fixed higher payment
- Even a small increase can cut months off the timeline.
See the month and interest difference
- The timeline shows why minimums keep you stuck.
Replace guesses with real numbers
- Run your balance and payment to see the payoff date.
FAQ
Does paying minimum hurt my credit score?
Paying on time helps, but carrying a high balance can still hurt your score.
Why is so much of the payment interest?
Interest is calculated on the balance each month, so large balances generate large interest costs.
How much extra makes a difference?
Even $25 to $50 more per month can move the payoff date significantly.
Does a lower APR change the math?
Yes. Lower APR means more of the payment goes to principal each month.