$5,000 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 $100.00/month
Total interest (minimum)
$4,977.90
paid on top of the $5,000 you borrowed
Fixed 3-year payoff
$183.25/mo
clears the debt in exactly 36 months
Total interest (3-year)
$1,597.24
total cost to escape this debt in 3 years
$3,380.66
saved by paying $183.25/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 8 yrs 4 mo $4,977.90 $9,977.90
Fixed 3-year payoff $183.25 36 months $1,597.24 $6,597.24
The fix: Commit to $183.25/month — $83.25 more than the minimum. This clears the debt in 3 years and saves $3,380.66 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 18.99% 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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