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Why minimum payments never end
Using credit without getting trapped · Lesson 20 of 22 · 3 min
The minimum is usually about 2% of the balance. On $2,000 at 24% APR, paying only the minimum takes over 15 years and costs more in interest than the original balance.
A fixed payment changes everything. Paying $100 a month instead of the shrinking minimum clears the same balance in about two years.
Run your own numbers in the Trap Detector before you decide what to pay.
Takeaway
Pick a fixed monthly payment and never lower it as the balance falls.
Next up: Credit repair scams and co-signing