How credit card interest adds up
Card issuers charge interest on your balance each month at roughly the APR divided by 12. When your payment only just covers that interest, the balance barely moves. That is why minimum payments can stretch a balance out for years.
B is the balance, r the APR divided by 12, and M your monthly payment. This assumes no new charges.
Avalanche vs. snowball
With several cards, paying extra on the highest-APR card first (the avalanche method) saves the most interest. Paying off the smallest balance first (the snowball method) gives quicker wins that keep some people motivated.
Frequently asked questions
Why is my balance not going down?
If most of your payment goes to interest, very little reduces the balance. Try raising the payment above to see how quickly the timeline shrinks.
Does a balance transfer help?
A 0% intro APR can save a lot if you clear the balance before the promo ends. Include the transfer fee, often 3–5%, when you compare.
Should I pay more than the minimum?
Yes, whenever you can. Even a small extra amount each month cuts both the payoff time and the total interest.