If I have a balance of only $1,000 on my credit card, with a 15% interest rate, and I only make the minimum payment of $15 each month, how long will it take me to pay off the balance, and how much will it really cost me in the end?

Question

If I have a balance of only $1,000 on my credit card, with a 15% interest rate, and I only make the minimum payment of $15 each month, how long will it take me to pay off the balance, and how much will it really cost me in the end?

Accepted Answer

By paying only the minimum due on a credit card balance in the example above, it would take about 12 years to pay it off, and end up costing you more than $2,000.

Saving, Managing Debt, and Budgeting

Credit Card Debt

If I have a balance of only $1,000 on my credit card, with a 15% interest rate, and I only make the minimum payment of $15 each month, how long will it take me to pay off the balance, and how much will it really cost me in the end?