The True Cost of Minimum Payments
If you only pay the minimum (usually 2-3% of balance), a $5,000 balance at 24.99% APR takes over 20 years to pay off and costs $7,000+ in interest. Even a small increase in your monthly payment can save years and thousands of dollars.
Strategies to Pay Off Faster
- Avalanche method: Pay minimum on all cards, extra on highest APR first
- Snowball method: Pay off smallest balance first for psychological wins
- Balance transfer: Move to a 0% intro APR card (saves the most if you can pay before promo ends)
- Consolidation loan: Personal loan at lower rate to pay off cards
- Stop using the card: Can't pay it off while still adding charges
Average Credit Card Rates
- Average APR: 24.99% (2026)
- Store cards: 28-30%
- Best credit (740+): 14-18%
- 0% intro APR periods: typically 12-21 months