Paying the Minimum on $3,000 Takes 15 Years. Here's the Fix.

Pay the minimum on a $3,000 credit card and it takes about 15 years and $4,467 in interest to clear. Pay the same first amount every month instead and it is gone in under 5 years. This video shows the arithmetic, why the minimum shrinks, and the box on your statement that already tells you your own numbers. CHAPTERS 0:00 Doing exactly what the bank asked 0:44 Where your $85 actually goes 1:22 The minimum shrinks 2:03 Same payment, ten years sooner 2:31 The honest part 2:53 The box on your statement 3:11 From the lender's side 3:33 Three things worth keeping 3:52 One thing to do today WORKED EXAMPLE $3,000 balance, 22.15% APR, minimum = that month's interest + 1% of the balance, $25 floor. Interest calculated monthly as a simplification; issuers usually charge it daily. Your card's formula and rate will differ. Your statement's Minimum Payment Warning box shows your real figures. SOURCES Footage of the Federal Reserve Board press briefing, 16 September 2026: Federal Reserve Board (public domain). Credit card interest rate, accounts assessed interest, Q2 2026: 22.15%. Federal Reserve Statistical Release G.19, Consumer Credit, September 2026. Minimum Payment Warning disclosure: Regulation Z, 12 CFR 1026.7(b)(12), Consumer Financial Protection Bureau. Educational content only, not financial advice. #CreditCards #PersonalFinance #Debt #MoneyBasics #FirstJob