Why does the minimum payment take so long?
Credit card minimum payments are designed to keep you in debt as long as possible. On a $5,000 balance at 22% APR, paying only the minimum ($100) takes over 9 years and costs $4,300 in interest — nearly doubling the original debt. Even small extra payments dramatically shorten the timeline.
What is the debt avalanche method?
Pay minimums on all cards, then direct all extra money to the card with the highest interest rate first. This minimises total interest paid. The alternative (debt snowball) pays smallest balances first for psychological wins. This calculator shows the impact of extra payments on any single card.