πŸ•ΈοΈ The 2% Math Trap

Most credit card companies set your minimum payment at just 2% of your balance. While this keeps your monthly "requirement" low, it ensures that your payment barely covers the interest, leaving the principal balance almost untouched.

πŸ“‰ A Real-World Example

If you have a $5,000 balance at 18% APR and only pay the minimum:

  • Time to Pay Off: Over 20 years.
  • Total Interest Paid: Over $6,000 (more than the original debt!).

By simply doubling your minimum payment, you can cut that time down to less than 5 years and save thousands in interest.

πŸ’‘ Break Free: Always pay more than the minimum. Even an extra $50 a month makes a massive difference over the life of the debt. Use our Credit Card Calculator to see your freedom date.
See Your Debt Freedom Date β†’