Our Expert says
The Minimum Payment Is Not Your Friend
Credit card minimum payments are calculated to maximise interest revenue for the bank not to help you pay off debt. A $10,000 balance with minimum payments only can take over 15 years to clear, costing more than $15,000 in interest which means you'd pay more than double the original amount borrowed.
When using our calculator compare minimum only payments against fixed higher amounts. Even increasing from $200 to $400 monthly can cut payoff time by 70% and save thousands in interest. 
The True Cost of Minimum Payments
How Minimum Payments Cost You More
Same debt vastly different outcomes based on payment amount.
| Minimum Only ($200) | $400 per month | $600 per month | $1,000 per month | |
|---|---|---|---|---|
| $5,000 | 32 months = $1,400 interest | 14 months = $580 interest | 9 months = $370 interest | 5 months = $210 interest |
| $10,000 | 94 months = $8,800 interest | 31 months = $2,400 interest | 19 months = $1,400 interest | 11 months = $780 interest |
| $20,000 | 180+ months = $26,000+ interest | 76 months = $10,400 interest | 43 months = $5,800 interest | 23 months = $3,000 interest |
A $10,000 balance cleared with minimum payments costs $8,800 in interest over 8 years.
The same balance cleared at $600 per month costs only $1,400 in
interest over 19 months which means $7,400 in total savings. Alternatives to High Credit Card Interest
Lower Cost Options to Clear Credit Card Debt
| Option | Interest Rate | Best For |
|---|---|---|
| Balance Transfer | 0% for 6 to 12 months (promotional) | Debt that can be cleared within promo period |
| Personal Loan | 5% to 12% EIR | Debt requiring 1 to 5 years to clear |
| Debt Consolidation Plan | 6% to 11% EIR | Debt exceeding 12x monthly income; MAS-regulated |
All three options are significantly cheaper than the 25.9% to 29.9% credit card rate. Even a
personal loan at 12% EIR. saves more than
half the interest cost compared to carrying a credit card balance. 
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