What a Credit Card Minimum Payment Really Costs

Paying the minimum keeps the account current but can stretch repayment and interest for years. Read the payoff box on the statement.

What the minimum does

The minimum is the amount required to avoid being marked unpaid for that cycle. It is not a low-cost repayment plan.

Read the warning box

US credit card statements generally show how long payoff could take with minimum-only payments and the payment needed to repay in three years, based on stated assumptions.

Interest changes the path

APR, new purchases, fees, and a changing minimum formula affect the result. Stop new spending on a payoff card when possible.

Build the payment

Protect the minimum with autopay, then schedule a fixed extra amount. If the APR is extreme, compare a nonprofit credit counselor before missing payments or using a risky settlement company.