What minimum payments really cost you
Minimum payments are designed to keep a balance alive, not to end it. Enter your total balance and average interest rate to see how many years the minimum path takes and what it adds up to — next to an illustrative estimate of a debt relief program.
Why the gap is so large
A typical card minimum is about 1% of the balance plus that month's interest. At a 24.99% APR, most of your payment covers interest in the early years, so the balance barely moves.
That is why a $25,000 balance can take decades and cost more in interest than the original debt. Comparing the two paths side by side makes the real trade-off visible: total dollars paid and years of your life.
Want the fee math in detail? Read how much debt settlement costs or compare settlement, consolidation, and bankruptcy.
Minimum payments vs. a program
Illustrative- Time to pay off
- 33 yr
- Starting payment
- $771/mo
- Interest paid
- $50,928
- Total cost
- $75,928
- Time to complete
- 3 yr
- Est. monthly deposit
- $514/mo
- Includes 25% fee
- $6,250
- Est. total cost
- $18,500
How the interest rate is used. The minimum-payment column assumes the APR you select above applies to your entire balance and never changes, and that your minimum payment is the greater of $25 or interest plus 1% of the balance — the formula most credit card issuers use. It also assumes you make no new charges. Your actual APR, minimum payment formula, fees, and penalty rates are set by your creditors and will differ, which changes both the payoff time and the total cost shown.
Program estimates. Program figures assume an illustrative settlement of roughly 49% of enrolled balances plus our flat 25% performance fee, spread over the program length you select. These are estimates, not an offer, quote, or guarantee. Results vary by creditor, balance, and your ability to fund the program, and not all clients complete a program. Enrolling will likely adversely affect your credit and may result in collection activity or lawsuits.
Availability. Our program is not available in all states, and not all debts are eligible. Availability, fees, and terms vary by state. Contact us to confirm whether the program is offered where you live.
Keep reading
Guides that pair well with this one.
Credit card debt: every option, compared
Six realistic ways to get out from under card balances.
Read guideDebt settlement vs. consolidation vs. bankruptcy
How each path works, what it costs, and who it fits.
Read guideDebt snowball vs. avalanche: which payoff method wins?
A worked example and a simple rule to pick one you'll finish.
Read guideSee if debt settlement is right for you.
A no-pressure conversation with a certified debt specialist. Free, confidential, and won’t affect your credit score.