Time to clear your balance
โ€”
โ€”
Your credit card
Ad space
Minimum vs your payment โ€” same balance and APR

How credit card payoff works

Credit card interest is charged on your remaining balance every month. When you pay only the minimum โ€” typically 1โ€“3% of the balance โ€” most of that payment is swallowed by interest, so the balance barely moves and the debt can linger for decades. Paying a fixed amount above the minimum dramatically cuts both the time and the total interest, because more of every payment attacks the balance itself.

Frequently asked questions

ALL FIGURES ARE ESTIMATES ยท ACTUAL MINIMUM PAYMENT RULES VARY BY CARD PROVIDER