The Credit Card Minimum Payment Trap

Minimum payments are designed to keep you in debt as long as possible. See how many years — and how much interest — a balance really costs you.

£3,000 on minimum payments can take 28 years and cost over £5,000 in interest

Your card

Interest rate (APR) 21.9%
0%20%40%
UK average purchase rate is around 24–25% (2026); representative APRs including fees often run higher. Check your statement — store cards can be 30%+.

Your card's minimum payment check your statement

Your statement's summary box shows this. "Interest + 1%" is the FCA standard.
Usually £5 to £25 — whichever is higher than the percentage

What if you paid a fixed amount instead?

Fixed monthly payment £100
£25£250£500
The trick: keep paying the same amount every month instead of letting it shrink with the balance.
On minimum payments, clearing this takes
—
—
Minimum vs a fixed payment
Minimum only
—
—
Fixed payment
—
—
Paying fixed saves you
—
in interest, and years of your life
The detail
Your first minimum payment—
Total repaid (minimum only)—
Total repaid (fixed)—
Interest saved by paying fixed—
Balance over time
Watch how slowly the minimum-payment line falls
What this means Enter your details above.
Why minimum payments are a trap As your balance falls, the minimum payment falls too — so you pay less and less each month, dragging the debt out for decades. Paying a fixed amount breaks the cycle. A 0% balance transfer card can wipe the interest entirely if you qualify — worth checking before anything else.
For illustrative purposes only. Not financial advice.
Assumes no further spending on the card and a constant interest rate. Real minimum payment rules vary by provider — check your statement.
If you're struggling with debt, StepChange and National Debtline offer free help.