The minimum payment trap: why £3,000 can take 27 years to clear

Credit card minimum payments are designed to keep you in debt for as long as possible. Understanding the maths shows why you need a different strategy.

The shocking maths

A £3,000 balance at 20% APR, paying only the minimum (typically 2% of balance or £25, whichever is higher):

Paying just £10 more per month above the minimum:

Why minimums are a trap

Credit card companies calculate minimums as a percentage of your balance. As your balance decreases, so does the minimum payment. This means you're paying less and less each month — while interest keeps accruing.

Strategies to clear credit card debt

1. Fix your payment

Pay a fixed amount each month instead of the minimum. Even £50/month fixed will clear debt far faster than the decreasing minimum.

2. Snowball method

Pay minimums on all cards except the one with the **smallest balance**. Pay as much as you can on that one. When it's clear, move to the next smallest. The quick wins keep you motivated.

3. Avalanche method

Pay minimums on all cards except the one with the **highest interest rate**. This saves the most money mathematically, but takes longer to see progress.

4. Balance transfer

Move debt to a 0% balance transfer card. Pay off as much as possible during the 0% period. Be disciplined — don't spend on the new card.

5. Contact your credit card company

Ask for an interest freeze. If you're in financial difficulty, they must consider this under FCA rules.

If you can't afford even the minimum

You have options:

Stop paying just the minimum today. Even a small increase makes a huge difference.