Minimum payments protect your credit score but not your wallet. Paying only the minimum on a high-APR credit card can turn a $2,000 balance into a decade of debt and thousands in interest.
Treat the minimum as a floor, not a target. Every dollar above it goes to principal, shortening the payoff and shrinking total interest.
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Talk to Auri →Frequently asked questions
How is a minimum payment calculated?
Usually 1–3% of the balance plus that period's interest, with a small floor (often $25–$35).
Related terms
APR (annual percentage rate)
The yearly cost of borrowing, including interest and most fees, expressed as a percentage.
Credit card
A short-term loan you can draw on repeatedly, up to a set limit, repaid monthly.
Avalanche method
Paying off debts in order of highest interest rate first while making minimum payments on the rest.
Snowball method
Paying off debts from smallest balance to largest, regardless of interest rate.