The True Cost of Only Paying Minimums on Credit Card Debt

Carrying credit card debt is already stressful, but what makes it worse is how much interest piles up when you only make the minimum payments. Let’s break down what happens if someone has $10,000 in credit card debt at an average interest rate of 22% APR and only pays the required minimum each month.

The Setup

• Balance: $10,000

• APR: 22% (about 1.83% monthly)

• Minimum Payment Rule: 2% of the balance or $25 (whichever is greater)

What Really Happens

When you make only the minimum payments:

• In the first month, the minimum payment is around $200. But almost all of that goes to interest, not principal.

• As the balance declines slightly, the minimum required payment gets smaller. That means you’re sending less and less toward the balance, keeping you in debt much longer.

The Results

After running the numbers:

• Time to Pay Off: Essentially 100 years (yes, a full century!)

• Total Paid: $103,786.84

• Total Interest Paid: $95,137.94

That’s nearly 10 times the original debt just in payments, with interest charges making up the overwhelming majority.

Why This Matters

The minimum payment may keep you current with the bank, but it’s designed to maximize profit for the lender — not to get you out of debt. By making only the minimum, you lock yourself into a cycle where interest eats away at your income for decades.

A Better Approach

• Pay more than the minimum. Even an extra $100 per month can cut years off your repayment.

• Consider debt relief or settlement programs. These can reduce balances faster than waiting out interest.

• Refinance or consolidate at lower rates. A personal loan or balance transfer may give you breathing room.

👉 Bottom line: On $10,000 of credit card debt at 22%, minimum payments alone could cost you over $100,000 and trap you for a lifetime. Paying extra each month is the only real way to escape.