$7,500 Debt at 20.99% APR

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

Minimum payment result
10 yrs
paying $150.00/month
Total interest (minimum)
$10,459.26
paid on top of the $7,500 you borrowed
Fixed 3-year payoff
$282.52/mo
clears the debt in exactly 36 months
Total interest (3-year)
$2,670.95
total cost to escape this debt in 3 years
$7,788.31
saved by paying $282.52/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 10 yrs $10,459.26 $17,959.26
Fixed 3-year payoff $282.52 36 months $2,670.95 $10,170.95
The fix: Commit to $282.52/month — $132.52 more than the minimum. This clears the debt in 3 years and saves $7,788.31 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 20.99% 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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