Credit Card Interest — What Banks Do Not Tell You
If you carry a $5,000 balance at 22% APR and only make minimum payments, it takes 24 years to pay off and costs $8,731 in interest — nearly double the original balance!
Minimum Payment Trap
| Balance | APR | Min Payment | Time to Pay Off | Total Interest |
|---|---|---|---|---|
| $2,000 | 20% | $40 | 9 years | $2,138 |
| $5,000 | 22% | $100 | 9.5 years | $6,432 |
| $10,000 | 24% | $200 | 11 years | $16,780 |
How to Escape
Pay more than minimum. Use balance transfer to 0% APR card. Apply debt avalanche method. Stop adding new charges. A $5,000 balance paid with $250/month instead of minimum clears in 24 months with only $1,178 interest.