The $3,000 Credit Card Trap

The $3,000 Credit Card Trap

Paying only the minimum is the most expensive way to borrow

$3,000 at 22% APR

Pay only the minimum (interest + 1% of balance, $25 floor)…

15 YEARS to clear

About 180 months — because the minimum shrinks as your balance falls.

$4,433 in interest

You'd pay back $7,433 for a $3,000 balance.

Now pay a fixed $150/month

Done in ~26 months. Interest: ~$771.

You save ≈ $3,662

Same card. Same balance. Just a fixed payment instead of the minimum.