Description
Only paying the minimum on your credit card? It could cost you hundreds in interest. This video breaks down exactly how minimum payments work, why they keep you in debt longer, and what to do instead.
Questions answered in this video:
• What happens if I only pay the minimum on my credit card?
• How much extra do minimum payments cost?
• How can I pay off my credit card balance faster?
Key takeaways:
• Minimum payments cover mostly interest — your actual balance barely shrinks
• A $300 balance at 18% APR can cost $60+ in interest with minimum payments
• Paying more than the minimum — even $50/month — dramatically cuts interest and payoff time
• Paying your full balance each billing cycle means zero interest charges
• Setting up autopay for more than the minimum is one of the simplest ways to save
Our mission is to empower our members to make financial progress, one step at a time. We believe progress is a journey made easier with help, so we root our content in trusted sources and independent research to give you the knowledge to reach your goals.
—
Like what you saw? Subscribe to our YouTube Channel: http://www.youtube.com/subscription_center?add_user=creditkarma
Learn more — check out this article: How to Pay Off Credit Card Debt: https://www.creditkarma.com/credit-cards/i/how-to-pay-off-credit-card-debt
Find us at:
http://www.creditkarma.com
TikTok: @creditkarma
Instagram: @creditkarma
X: @creditkarma
Facebook: /creditkarma
#creditcard #minimumpayment #personalfinance #debtfree #creditkarma