Minimum payment.
In plain English
Minimums are typically around 1% to 2% of the balance plus interest and fees, or a small floor like $25 to $35. Because the minimum shrinks as the balance shrinks, paying only the minimum stretches the payoff across decades. Your statement's "Minimum Payment Warning" box shows this math by law; it's the most honest paragraph on the page.
01Why it matters
Paying only the minimum is how a manageable balance becomes a decades-long, interest-heavy debt, which is the most common credit-card mistake there is.
02The math, step by step
A $5,000 balance at 24% APR, paying minimums only, takes well over 20 years to clear and costs thousands in interest. A fixed $250/month clears the same balance in about 26 months for roughly $1,450 in interest.
03What this is NOT
The minimum payment is the floor that keeps the interest meter running longest, not a recommendation and not "what you owe."
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
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