$2,500 Debt at 24.99% APR

The minimum payment cannot cover the monthly interest charge. The balance grows — not shrinks.

Warning: Minimum Payment Will Never Pay Off This Debt

At 24.99% APR, your $2,500 balance accrues $52.06 in interest every month. Your minimum payment of $50.00 is less than that — meaning your balance grows each month even while you make payments. This is not a payoff plan. It is a trap.

Minimum payment result
Never paid off
$50.00/mo can't beat $52.06 monthly interest
Monthly interest charge
$52.06
accrued every month on $2,500
Fixed 3-year payoff
$99.39/mo
clears the debt in exactly 36 months
Total interest (3-year)
$1,077.85
total cost to escape this debt in 3 years

Payoff Strategy Comparison

Strategy Monthly Payment Time to Pay Off Total Interest Total Paid
Minimum payments only $50.00 Never Balance grows Infinite
Fixed 3-year payoff $99.39 36 months $1,077.85 $3,577.85
The only way out: You must pay more than $52.06/month just to stop the balance growing. Committing to $99.39/month clears the entire $2,500 in 36 months for $1,077.85 in interest. Every month you delay, the balance grows larger and the exit becomes more expensive.

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 24.99% APR, the minimum is $50.00/month. This is less than the $52.06 monthly interest charge — so every payment leaves the balance larger than it started. This is precisely how lenders profit from high-APR accounts.

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