The revolving mechanic
Unpaid balances accrue interest; new charges add to the pile. Without a plan, unpaid interest gets folded into next month’s balance, so you end up paying interest on interest, often at high APR tiers.
Why minimums fail
Minimums often cover little principal, sometimes barely above the monthly interest. See the timeline with a payoff calculator; the years can shock you.
Breaking the cycle
- Stop adding new charges you can’t pay in full.
- Negotiate hardship or transfer options carefully. Fees matter.
- Use avalanche or snowball strategies. Consistency beats perfection.
Use the calculator
FAQ
- Should I invest while carrying card debt?
Usually pay off high-APR debt first. The guaranteed “return” equals the interest rate you avoid.