$2,500 Debt at 22.99% APR

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

Minimum payment result
13 yrs 11 mo
paying $50.00/month
Total interest (minimum)
$5,847.19
paid on top of the $2,500 you borrowed
Fixed 3-year payoff
$96.76/mo
clears the debt in exactly 36 months
Total interest (3-year)
$983.43
total cost to escape this debt in 3 years
$4,863.76
saved by paying $96.76/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 13 yrs 11 mo $5,847.19 $8,347.19
Fixed 3-year payoff $96.76 36 months $983.43 $3,483.43
The fix: Commit to $96.76/month — $46.76 more than the minimum. This clears the debt in 3 years and saves $4,863.76 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 22.99% 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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