Get out of credit card debt: pay a fixed amount, not the minimum

To get out of credit card debt, stop adding to the balance and pay a fixed amount every month, well above the minimum. Minimum payments shrink as your balance shrinks, so paying only the minimum can take close to 20 years. A fixed payment clears the same balance in about three years or less.

How card interest works

Your card has a yearly rate, the APR. Interest is charged every month at roughly one-twelfth of it, and unpaid interest is added to the balance. Next month you pay interest on that interest. That is compound interest working against you.

Most cards give you a grace period on purchases. If you pay the full statement balance by the due date, you pay no interest. If you leave any balance, interest applies to purchases too. Cash withdrawals usually have no grace period: interest starts on the day you take the cash.

How minimum payments work

The minimum payment is the least you must pay to avoid a late fee. It is usually a small percentage of the balance, with a floor amount.

Issuers set their own formula. Experian describes two common ones: a flat 2% to 4% of the balance, or about 1% of the balance plus that month's interest and fees. Either way there is a floor, such as $25 or $35.

In the US, the average rate on cards that were charged interest was 22.15% a year in Q2 2026. Across all accounts it was 20.94% (Federal Reserve G.19, released 7 October 2026). By law, US statements must show how long minimum-only payments would take and what payment clears the balance in 36 months.

Why minimum-only takes years: a worked example

This is an example. The rate and minimum formula follow the published terms above. You stop using the card and compare three ways to repay.

You owe $5,000 at 22.15% a year. The minimum is 1% of the balance plus interest, at least $25. Your first minimum is $142.29.

Look at the middle row. $150 is barely more than your first minimum. Keeping it fixed saves about $5,300 and more than 14 years.

The reason is simple. Each month the minimum is recalculated on a smaller balance, so it drops. Most of each smaller payment goes to interest, and the principal falls slowly. A fixed payment keeps sending more to principal every month.

Try it with your numbersDebt PayoffCompare debt repayment strategies and discover when you could become debt-free.

Stop the balance growing

Paying down a card you still use is like bailing water with the tap on. Turn off the tap first.

1. Stop new spending on the card. Remove it from shopping apps and saved payment details. Use a debit card or cash for daily spending.
2. Never miss a minimum. Set up an automatic payment for at least the minimum. A late fee adds straight to the balance.
3. Avoid cash withdrawals. Interest usually starts the same day, and a withdrawal fee comes on top.
4. Keep a small buffer. A starter emergency fund stops the next surprise bill from going on the card.
5. Know every card's numbers. If you have several cards, list balances and rates. Then target one card at a time using the avalanche or snowball method.

Ways to lower what you pay

You cannot change the rate on your own, but you can lower the cost.

• Ask your bank. Call and ask whether a lower rate or a structured repayment plan is available. If you are struggling, say so early.
• Use spare savings, carefully. Money in savings earning less than your card rate is costing you the difference. Keep your emergency buffer, and use only what is left.
• Raise your fixed payment when you can. Every raise, bonus or cleared bill can go to the card.

Use your statement box

Your US statement shows the monthly payment that clears the balance in 36 months. That is a useful starting point for your fixed payment. The CFPB notes it does not account for new purchases.

Your plan

1. Find your real numbers. From your latest statement, write the balance, the rate, the minimum and the due date.
2. Stop using the card. Remove it from apps and your wallet until the balance is zero.
3. Automate the minimum. Set an automatic payment so you never pay a late fee.
4. Choose a fixed monthly payment. Start at no less than this month's minimum, and keep it the same as the minimum falls.
5. Add any extra to the same card. If you have several cards, focus the extra on one and pay minimums on the rest.
6. Ask your bank about cost. Ask about lower rates and repayment plans, and compare total cost before you agree.
7. Track it monthly. Write down the balance each month. When it reaches zero, keep paying in full every month.

What to watch out for

• The falling minimum. Your bank will happily accept less each month. A lower bill is not progress.
• Hidden fees in installment plans. Admin fees and early-settlement fees change the real cost. Ask for the total amount you will repay.
• "Interest-free" with conditions. Interest-free periods usually apply only if you pay the full statement balance.
• Cash withdrawals and over-limit spending. Both add fees and interest from day one.
• Closing a paid-off card in anger. Paying it off is the win. Whether you keep or close it, do not let a new balance build.