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Because most of the minimum goes to interest rather than principal. On a $5,000 balance at 22% APR, the monthly interest is about $92 (22% ÷ 12 × $5,000). A 2% minimum payment is $100, so only roughly $8 actually reduces your principal in the first month. As the balance falls, the minimum is recalculated lower too, so each payment chips away even less, dragging the payoff out for well over a decade. The fix is to ignore the shrinking minimum and pay a fixed dollar amount instead — every dollar above the interest charge goes straight to principal and compounds your progress month after month.

It makes sense when the transfer fee costs less than the interest you'd otherwise pay and you can clear the balance during the 0% intro period. Those promotions typically last 15-21 months and charge a 3-5% transfer fee upfront. For example, moving $5,000 at a 3% fee costs $150, versus well over $1,000 in interest if you kept it on a card at 22% APR. The catch is that any balance remaining when the intro period ends reverts to the regular APR, often above 20%, so a transfer only helps if you have a realistic plan to pay it off in time and stop adding new charges to either card.

Most cards charge interest daily on your average daily balance. The APR is divided by 365 to get a daily periodic rate — a 22% APR is about 0.0603% per day — and that rate is applied to your balance each day, then summed into one monthly charge. If you pay your statement balance in full by the due date, the grace period means you pay zero interest on purchases. But carry any balance forward and you lose that grace period: new purchases start accruing interest from the day they post, and you're charged for every day the balance sits there. This calculator uses the equivalent monthly rate (APR ÷ 12) to project your payoff, which closely tracks the daily method.

Mathematically, attack the debt with the highest interest rate first — the avalanche method — and credit cards usually top the list. A $5,000 card balance at 22% APR costs about $1,100 a year in interest, while a $5,000 car loan at 6% costs around $300, so clearing the card first saves roughly $800 annually. The snowball method, which targets the smallest balance first regardless of rate, costs a bit more in total interest but delivers quick wins that help some people stay motivated. Either way, you make minimum payments on everything else and throw all spare cash at the one target debt. For high-APR credit cards specifically, the avalanche math is usually compelling.

Treat credit cards like debit cards and never charge more than you can repay that month. The simplest safeguard is autopay set to the full statement balance, which guarantees you keep the grace period and pay zero interest. Build a starter emergency fund — many advisors suggest around $1,000 to begin — so unexpected costs go to savings rather than onto the card. If you ever can't pay in full, stop using the card immediately and switch to cash or debit until the balance is cleared, so you're not stacking new interest-bearing purchases on top of old debt. Used this way, cards give you rewards and fraud protection without ever costing you a cent in interest.