Why the minimum keeps you in debt
Card minimums are usually calculated as the month's interest plus a small slice of the balance, often 1%, with a dollar floor. As the balance falls, the minimum falls with it, so you pay off less principal each month. That is why minimum payments can stretch a modest balance over many years. In the US, the CARD Act requires statements to show how long payoff will take at the minimum and what it will cost.
On a $5,000 balance at 22%, the first minimum here is about $142. Paying only the minimum keeps shrinking that payment and takes far longer than keeping the payment fixed at $142. The difference in interest is often thousands of dollars.
The simplest fix
Decide on a fixed payment and keep paying it even as the required minimum drops. Setting up an automatic payment for a fixed amount, rather than "minimum due", does this without any willpower. If you can add even $25 to $50 more, the timeline shortens again.
Common questions
How long to pay off $5,000 paying the minimum?
With a 1%-plus-interest minimum at 22% APR, typically well over a decade, depending on the floor.
Does paying the minimum hurt my credit?
It keeps the account in good standing, but a high balance relative to your limit can lower your score.
How is the minimum payment calculated?
Often interest plus 1% of the balance, or a flat percentage like 2% to 3%, with a minimum dollar amount.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.