$5,000 Debt at 22.99% APR

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

Minimum payment result
13 yrs 11 mo
paying $100.00/month
Total interest (minimum)
$11,694.38
paid on top of the $5,000 you borrowed
Fixed 3-year payoff
$193.52/mo
clears the debt in exactly 36 months
Total interest (3-year)
$1,966.85
total cost to escape this debt in 3 years
$9,727.53
saved by paying $193.52/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 13 yrs 11 mo $11,694.38 $16,694.38
Fixed 3-year payoff $193.52 36 months $1,966.85 $6,966.85
The fix: Commit to $193.52/month — $93.52 more than the minimum. This clears the debt in 3 years and saves $9,727.53 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 22.99% 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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