TIL paying the minimum on my card was costing me $400 a year

I had this Chase card with a $3,200 balance and I just paid the minimum every month for like 2 years. A friend who works at a bank looked at my statement and showed me how much interest I was racking up. Anyone else figure out late that minimum payments are basically a trap?

3 comments

3 Comments

vera_johnson925d ago

My buddy did the same thing with a Best Buy card, thought he was being smart just making the minimum and ended up paying almost double for a laptop over three years... really opened my eyes.

markh8525d ago

Read a study saying average credit card interest on store cards is around 26% now.

lilya7625d ago

26% is wild" - my friend Jenna got a Kohl's card for a big bedding set she wanted. Thought she was being so good paying the minimum every month. She paid it off eventually but told me she spent like $150 extra in interest for stuff that was already marked down. Totally not worth it.