Short answer: most of your minimum payment goes to interest, not to what you owe. At today’s average card rate, paying only the minimum on $12,000 could take more than 20 years and cost over $18,000 in interest.
A real example
Say you owe $12,000 at 19.70%, the average card rate (Bankrate, October 21, 2026), and your minimum is 1% of the balance plus that month’s interest.
- First month’s minimum: about $317.
- How much of that is interest: about $197.
- How much actually lowers your balance: about $120.
Keep paying only the minimum and it takes about 23 years to pay off, with about $18,300 in interest. That is more than the original balance. (Our estimate; your card’s formula may differ.)
What moves the balance
- Pay a fixed amount, not the minimum. Paying $350 a month on the same $12,000 clears it in about 4 years, with about $5,800 in interest.
- Lower the rate. A balance transfer, a consolidation loan or a credit counselor’s plan can cut the interest if your credit is still good.
- Lower the balance itself. If you are behind or close to it, a Fresh Start Plan negotiates with your creditors to accept less than you owe.
See your own numbers
Use the credit card interest calculator on this page. Enter your balance, rate and payment, and it shows how much interest you will pay and how long it will take. If the number is bigger than you expected, call us and we will walk through your options for free.
No upfront fees. We don’t get paid unless we settle. Call (888) 514-1085 or text 718-766-5193.
Examples are estimates for illustration only. Results vary and are not guaranteed. This article is general information, not financial advice.