Credit-Card Minimum Payment Trap

"How much money and time do I waste paying only the minimum?"

Consumption debt is the radioactive material of personal finance — debt taken on to buy things that lose value immediately, generate zero income, and have no resale value.

— Debugging Your Personal Finance, Chapter 6

"Minimum payment" here means interest plus the percent-of-principal you set. Real credit cards may use different rules (e.g., a fixed $25 floor). With 1% of principal on a 22% APR card, the balance never effectively pays off — the calculator shows ≥600 months ("decades+") to drive that point home.

From Chapter 6 of Debugging Your Personal Finance. Simple calculator · Inputs stay in your browser · Not financial advice.