Why credit card interest adds up so fast
Card APRs are among the highest of any consumer debt — often 18%–29%. Because interest compounds monthly on the remaining balance, a large share of a small payment goes straight to interest, which is why minimum payments can stretch a balance over many years.
How paying more changes everything
Raising your monthly payment shortens the payoff time disproportionately, because more of each dollar attacks the principal. Even an extra $50 a month can cut years off the term and save hundreds or thousands in interest.
The minimum payment trap
If your payment barely exceeds the monthly interest, the balance falls painfully slowly; if it’s below the interest, the balance actually grows. This calculator flags when a payment is too low to make progress.
Frequently asked questions
What if I keep using the card?
This assumes no new purchases. Adding charges while paying down resets your progress — to clear the balance, stop adding to it.
Is the APR the same as the monthly rate?
No. The monthly rate is the APR ÷ 12. A 22% APR is about 1.83% per month, charged on your outstanding balance.
How can I pay off the card faster?
Pay more than the minimum, target the highest-APR card first (the avalanche method), and consider a 0% balance-transfer offer to pause interest while you attack the principal.