$2,500 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 $50.00/month
Total interest (minimum)
$2,488.95
paid on top of the $2,500 you borrowed
Fixed 3-year payoff
$91.63/mo
clears the debt in exactly 36 months
Total interest (3-year)
$798.56
total cost to escape this debt in 3 years
$1,690.39
saved by paying $91.63/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 8 yrs 4 mo $2,488.95 $4,988.95
Fixed 3-year payoff $91.63 36 months $798.56 $3,298.56
The fix: Commit to $91.63/month — $41.63 more than the minimum. This clears the debt in 3 years and saves $1,690.39 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 18.99% 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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