$2,500 Debt at 20.99% APR

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

Minimum payment result
10 yrs
paying $50.00/month
Total interest (minimum)
$3,486.42
paid on top of the $2,500 you borrowed
Fixed 3-year payoff
$94.17/mo
clears the debt in exactly 36 months
Total interest (3-year)
$890.36
total cost to escape this debt in 3 years
$2,596.06
saved by paying $94.17/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 10 yrs $3,486.42 $5,986.42
Fixed 3-year payoff $94.17 36 months $890.36 $3,390.36
The fix: Commit to $94.17/month — $44.17 more than the minimum. This clears the debt in 3 years and saves $2,596.06 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 20.99% APR, the minimum is $50.00/month. While this keeps you current with the lender, most of each payment goes to interest — not principal.

Explore Other Scenarios