$5,000 Debt at 15.99% APR

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

Minimum payment result
6 yrs 11 mo
paying $100.00/month
Total interest (minimum)
$3,290.18
paid on top of the $5,000 you borrowed
Fixed 3-year payoff
$175.76/mo
clears the debt in exactly 36 months
Total interest (3-year)
$1,327.38
total cost to escape this debt in 3 years
$1,962.80
saved by paying $175.76/month instead of $100.00/month

Payoff Strategy Comparison

Strategy Monthly Payment Time to Pay Off Total Interest Total Paid
Minimum payments only $100.00 6 yrs 11 mo $3,290.18 $8,290.18
Fixed 3-year payoff $175.76 36 months $1,327.38 $6,327.38
The fix: Commit to $175.76/month — $75.76 more than the minimum. This clears the debt in 3 years and saves $1,962.80 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 $5,000 at 15.99% APR, the minimum is $100.00/month. While this keeps you current with the lender, most of each payment goes to interest — not principal.

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