Why Minimum Payments Keep You in Debt

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Why Minimum Payments Keep You in Debt

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A $1,000 car repair can feel manageable when the credit-card statement shows a small minimum payment due. But the minimum payment and a payoff plan do different jobs. In this episode, Sarah explains in plain language why minimum-only payments can leave a balance in place for years, using a simplified $35 payment example. She also shows how to find repayment or payoff information on a credit-card statement, including the minimum-payment payoff timeline and the monthly amount calculated to pay the current balance in three years. One small step: take out one statement and write down your current balance, minimum payment due, and three-year payoff amount. This is general educational information, not personalized financial advice. Sources discussed: Consumer Financial Protection Bureau guidance and repayment-disclosure rules; Consolidated Credit consumer education. Music by Dmitrii Kolesnikov from Pixabay Watch the companion video: https://www.youtube.com/watch?v=pupZz7Zg3SQ

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