$7,500 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 $150.00/month
Total interest (minimum)
$4,935.26
paid on top of the $7,500 you borrowed
Fixed 3-year payoff
$263.64/mo
clears the debt in exactly 36 months
Total interest (3-year)
$1,991.07
total cost to escape this debt in 3 years
$2,944.19
saved by paying $263.64/month instead of $150.00/month

Payoff Strategy Comparison

Strategy Monthly Payment Time to Pay Off Total Interest Total Paid
Minimum payments only $150.00 6 yrs 11 mo $4,935.26 $12,435.26
Fixed 3-year payoff $263.64 36 months $1,991.07 $9,491.07
The fix: Commit to $263.64/month — $113.64 more than the minimum. This clears the debt in 3 years and saves $2,944.19 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 $7,500 at 15.99% APR, the minimum is $150.00/month. While this keeps you current with the lender, most of each payment goes to interest — not principal.

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