Simulator

The Minimum Payment Trap

Same $1,000 balance. Same 24% APR. Three different payment strategies. Watch the gap.

Pay in full

Time0 months

Total paid$1,000

Cost$0 wasted

Fixed $100/mo

Time~11 months

Total paid$1,127

Cost$127 in interest

Minimum only (2%)

Time~9 years

Total paid$2,032

Cost$1032 in interest 😱

The takeaway

The "minimum payment" exists to make the bank money — not to help you. Paying even a little more than the minimum cuts your payoff time dramatically.