The minimum payment cannot cover the monthly interest charge. The balance grows — not shrinks.
At 27.99% APR, your $30,000 balance accrues $699.75 in interest every month. Your minimum payment of $600.00 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.
| Strategy | Monthly Payment | Time to Pay Off | Total Interest | Total Paid |
|---|---|---|---|---|
| Minimum payments only | $600.00 | Never | Balance grows | Infinite |
| Fixed 3-year payoff | $1,240.75 | 36 months | $14,666.75 | $44,666.75 |
Credit card issuers typically set the minimum at the greater of $25 or 2% of the outstanding balance. For $30,000 at 27.99% APR, the minimum is $600.00/month. This is less than the $699.75 monthly interest charge — so every payment leaves the balance larger than it started. This is precisely how lenders profit from high-APR accounts.