What that “minimum due” actually costs you.
Credit card minimums are calculated to keep your account open and profitable for the issuer — not to get you out of debt. On a high-APR card, the minimum sometimes doesn't even cover a full month of interest, which means the balance can sit there (or grow) while you pay faithfully every month.
The fix is boring and powerful: pay a fixed amount above the minimum, every month, no exceptions. Even $50 extra attacks the principal directly instead of feeding interest. Use this calculator to see the trap, then use the payoff calculator to plan the escape.
Because most of each payment goes to interest, not principal. With a 25% APR, over 60% of an early minimum payment can be pure interest.
Many issuers set the minimum as 2% of your balance (with a $25 floor). On large balances at high APRs, that 2% may not even cover one month of interest.
Dramatically. Doubling a $60 minimum to $120 on a $3,000 balance can cut years off the timeline and save thousands in interest — try both in the payoff calculator.
Paying on time helps your payment history. But carrying a high balance hurts your utilization ratio, which drags the score down. Paying more fixes both.