debt_relief
Minimum Payments: What They Really Cost You
Making only minimum payments can keep you in debt for years. See the math and explore alternatives.
By The Bangk Editorial Team• Reviewed by Editorial Review Board2025-01-05• Updated 2025-01-15
What This May Mean for You
Paying more than the minimum can dramatically reduce both the time and total cost of repaying your debt.
When you make only the minimum payment on a credit card, most of your payment goes toward interest, not principal.
For example, a $5,000 balance at 22% APR with a 2% minimum payment could take over 30 years to pay off and cost more than $8,000 in interest alone.
Understanding this reality is the first step toward finding a better path, whether that's paying more each month, a balance transfer, consolidation, or exploring debt-relief options.
Educational content only. Figures are illustrative examples, not guarantees.