$7,500 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 $150.00/month
Total interest (minimum)
$7,466.85
paid on top of the $7,500 you borrowed
Fixed 3-year payoff
$274.88/mo
clears the debt in exactly 36 months
Total interest (3-year)
$2,395.79
total cost to escape this debt in 3 years
$5,071.06
saved by paying $274.88/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 8 yrs 4 mo $7,466.85 $14,966.85
Fixed 3-year payoff $274.88 36 months $2,395.79 $9,895.79
The fix: Commit to $274.88/month — $124.88 more than the minimum. This clears the debt in 3 years and saves $5,071.06 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 18.99% 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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