$25,000 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 $500.00/month
Total interest (minimum)
$24,889.50
paid on top of the $25,000 you borrowed
Fixed 3-year payoff
$916.27/mo
clears the debt in exactly 36 months
Total interest (3-year)
$7,985.92
total cost to escape this debt in 3 years
$16,903.58
saved by paying $916.27/month instead of $500.00/month

Payoff Strategy Comparison

Strategy Monthly Payment Time to Pay Off Total Interest Total Paid
Minimum payments only $500.00 8 yrs 4 mo $24,889.50 $49,889.50
Fixed 3-year payoff $916.27 36 months $7,985.92 $32,985.92
The fix: Commit to $916.27/month — $416.27 more than the minimum. This clears the debt in 3 years and saves $16,903.58 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 $25,000 at 18.99% APR, the minimum is $500.00/month. While this keeps you current with the lender, most of each payment goes to interest — not principal.

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