$2,500 Debt at 15.99% APR

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

Minimum payment result
6 yrs 11 mo
paying $50.00/month
Total interest (minimum)
$1,645.09
paid on top of the $2,500 you borrowed
Fixed 3-year payoff
$87.88/mo
clears the debt in exactly 36 months
Total interest (3-year)
$663.69
total cost to escape this debt in 3 years
$981.40
saved by paying $87.88/month instead of $50.00/month

Payoff Strategy Comparison

Strategy Monthly Payment Time to Pay Off Total Interest Total Paid
Minimum payments only $50.00 6 yrs 11 mo $1,645.09 $4,145.09
Fixed 3-year payoff $87.88 36 months $663.69 $3,163.69
The fix: Commit to $87.88/month — $37.88 more than the minimum. This clears the debt in 3 years and saves $981.40 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 $2,500 at 15.99% APR, the minimum is $50.00/month. While this keeps you current with the lender, most of each payment goes to interest — not principal.

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