Credit card interest is some of the most expensive money you can borrow. The good news: small changes to your monthly payment make a huge difference. See it for yourself with the credit card payoff calculator.
Why the minimum payment is a trap
Minimum payments are designed to keep you in debt as long as possible. When your payment barely covers the monthly interest, the balance hardly moves — and you can end up paying more in interest than the original purchase.
Pay more than the interest
The key rule: always pay more than the monthly interest charge. Every extra dollar goes straight at the balance. Try increasing your payment in the calculator and watch both the payoff time and total interest drop.
A simple plan
- Find a fixed monthly payment you can stick to.
- Keep paying that amount even as the balance falls.
- Put any windfalls — refunds, bonuses — straight at the card.
Once the card is clear, redirect that same payment into savings. Our savings goal and compound interestcalculators show how quickly that money can grow when it's working for you.