See the shocking cost of only making minimum payments — and what happens when you pay more.
Fill in your debt details and hit "Show Me The Truth" to see the real cost of minimum payments.
Minimum payments are the smallest amount your lender requires you to pay each month. For credit cards, this is typically 1–5% of the outstanding balance or a fixed floor (e.g. £25), whichever is higher. While paying the minimum keeps your account in good standing, it barely dents the actual debt.
Because minimum payments shrink as your balance drops, you end up paying mostly interest for years. A £3,000 credit card balance at 21.9% APR with 2.5% minimum payments could take over 25 years to clear — and you’d pay thousands in interest alone. The debt barely moves in the early years.
Most UK credit card providers calculate the minimum as a percentage of the outstanding balance (usually 2–3%), with a floor amount (typically £25). As your balance falls, the percentage amount drops until it hits the floor, at which point you pay the fixed floor amount each month until the debt is cleared.
Even a small increase above the minimum can save you years and thousands of pounds. For example, paying a fixed £100 instead of the 2.5% minimum on a £3,000 balance could save you over 20 years and thousands in interest. The key is keeping your payment fixed rather than letting it shrink with the balance.
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