Why Paying More Than the Minimum Matters

Minimum payments are designed to be affordable, not to clear the debt quickly. On high-interest balances, much of each payment can go to interest.

A fixed payment changes the outcome

A $8,000 balance at 19.9% APR with a fixed $300 payment is gone in about three years, costing roughly $2,650 in interest. Minimum payments that fall as the balance falls can drag the same debt out much longer.

How to move faster

• Choose a fixed payment you can keep up.
• Add windfalls to the highest-rate balance.
• Avoid new charges while paying down.

For deeper strategy, see our guide to the debt snowball and avalanche methods.