Why Paying the Minimum on Credit Cards Could Destroy Your Finances in 2025
The Dangerous Credit Card Myth Millions Still Believe in 2025
It’s 2025, and one of the most financially damaging myths still believed by millions is this: “Making the minimum payment on your credit card is enough.”
According to a CNBC report, many Americans underestimate the long-term impact of only paying the minimum. This mistake quietly fuels a growing debt crisis—often without people realizing the true cost until it's too late.
Let’s break it down. If you owe $5,000 on a credit card at a 20% APR and only make the minimum payment (around 2% of the balance), it could take over 30 years to pay it off. And you'll likely pay more than double the original amount in interest alone.
Real Cost of Minimum Payments
| Payment Strategy | Time to Pay Off | Total Interest Paid |
|---|---|---|
| Minimum Payment (2%) | 30+ years | $6,500+ |
| $200 Monthly Payment | 3 years | $1,600 |
| Balance Transfer 0% APR | 18 months | $0 (if paid on time) |
According to financial planner Michelle Singletary, “Minimum payments are a trap designed to maximize bank profits—not help you get out of debt.”
Google Trends shows a steady rise in queries like “Is it bad to pay only the minimum on credit cards?” and “How to pay off credit card debt faster?”—indicating growing awareness, but also growing confusion.
To stay ahead of this trap in 2025, consider using debt snowball or avalanche strategies, negotiate lower APRs with your bank, or consolidate via 0% APR balance transfer cards.
Still unsure? Explore our in-depth guide to smart credit card payoff strategies to regain financial control.
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