The Credit Card That Never Dies (19.5 Years of Minimums)

Pay only the minimum on a $5,000 credit card and it can take 19.5 years to pay off. Then see the one tiny change that cuts it to about 4.5. In this animated explainer, Cole shows how the credit card minimum payment works, and why it shrinks as your balance drops. You’ll see how much of each payment goes to credit card interest instead of principal, using a $5,000 balance at an example 24% APR. Then you’ll see how freezing your payment can help you pay off credit card debt faster. You’ll also learn where to find the minimum payment warning on your statement, and what to ask your card issuer about lowering your rate. All numbers are examples, so your results will vary.