The minimum payment cannot cover the monthly interest charge. The balance grows — not shrinks.
At 27.99% APR, your $15,000 balance accrues $349.88 in interest every month. Your minimum payment of $300.00 is less than that — meaning your balance grows each month even while you make payments. This is not a payoff plan. It is a trap.
| Strategy | Monthly Payment | Time to Pay Off | Total Interest | Total Paid |
|---|---|---|---|---|
| Minimum payments only | $300.00 | Never | Balance grows | Infinite |
| Fixed 3-year payoff | $620.37 | 36 months | $7,333.48 | $22,333.48 |
Credit card issuers typically set the minimum at the greater of $25 or 2% of the outstanding balance. For $15,000 at 27.99% APR, the minimum is $300.00/month. This is less than the $349.88 monthly interest charge — so every payment leaves the balance larger than it started. This is precisely how lenders profit from high-APR accounts.