Why minimum payments take so long
Card companies set the minimum low, often 1% of the balance plus that month's interest, with a floor around $25 to $35.
Card companies set the minimum low, often 1% of the balance plus that month's interest, with a floor around $25 to $35. As the balance shrinks, so does the minimum, so you pay a little less each month and the debt drags on for years. Most of each early payment goes to interest.
Your statement has to show this. Under the Credit CARD Act, card statements include a minimum payment warning box that says how long payoff takes and what it costs if you pay only the minimum, plus the payment that clears the balance in 3 years.
Ways to get out faster
Pick a fixed payment and keep it. Paying the same amount every month, even as the balance drops, is what makes the payoff date come in. Stop new charges on the card you're paying down. Ask for a lower rate. If you've paid on time, a call asking for a lower APR works more often than people expect. Use a 0% balance transfer only if you can pay the balance off before the promo ends.
More than one card?
Use the debt payoff calculator to compare paying the highest rate first (avalanche) with the smallest balance first (snowball), and to get your debt-free date across every card and loan.
This calculator assumes interest is charged monthly at APR divided by 12 and a minimum of 1% of the balance plus interest, at least $25. Your card's exact formula and daily interest can change the result by a little.
Sources
3 sources
Last checked October 2026. Amounts change every year.
- CFPB · Credit card basics and your rights
- CFPB · Regulation Z §1026.7: minimum payment disclosures on statements
- Federal Reserve · G.19 consumer credit, credit card interest rates