Minimum payment
The smallest amount you can pay to stay current. It’s designed to be small, often mostly interest and fees.
Pay only the minimum and your balance barely moves. That’s the “minimum payment trap.”
A little more than the minimum, paid consistently, saves months and interest.
Common questions
How is a credit card minimum payment calculated?
Most issuers charge the greater of a flat floor - often around $25 to $35 - or a small percentage of your balance, commonly 1% to 3%, plus that cycle's interest and fees. Because the percentage shrinks as the balance falls, the payoff gets slower the longer you carry a balance.
What is the minimum payment trap?
Paying only the minimum covers the interest and fees first, so very little goes to principal. A balance carried at a typical APR can take well over a decade to clear and cost more in interest than the original purchases. The payment feels affordable precisely because it barely reduces the debt.
How much more than the minimum should I pay?
Any fixed amount above the minimum helps, because it stays flat while the minimum shrinks. Paying a steady amount rather than a percentage typically cuts a multi-year payoff to months. CardLab lets you compare minimum-only against a fixed payment on your own balance and APR.