$20,000 Debt at 18.99% APR

Here is exactly what minimum payments cost you — and a clear path out.

Minimum payment result
8 yrs 4 mo
paying $400.00/month
Total interest (minimum)
$19,911.60
paid on top of the $20,000 you borrowed
Fixed 3-year payoff
$733.02/mo
clears the debt in exactly 36 months
Total interest (3-year)
$6,388.69
total cost to escape this debt in 3 years
$13,522.91
saved by paying $733.02/month instead of $400.00/month

Payoff Strategy Comparison

Strategy Monthly Payment Time to Pay Off Total Interest Total Paid
Minimum payments only $400.00 8 yrs 4 mo $19,911.60 $39,911.60
Fixed 3-year payoff $733.02 36 months $6,388.69 $26,388.69
The fix: Commit to $733.02/month — $333.02 more than the minimum. This clears the debt in 3 years and saves $13,522.91 in interest.

How Minimum Payments Are Calculated

Credit card issuers typically set the minimum at the greater of $25 or 2% of the outstanding balance. For $20,000 at 18.99% APR, the minimum is $400.00/month. While this keeps you current with the lender, most of each payment goes to interest — not principal.

Explore Other Scenarios