I only pay the minimum on my credit card. Why isn't the balance going down?

Concerns & risks

Every month you pay the minimum on your credit card, right on time. Yet months later, the balance has barely moved. It feels like running on a treadmill.

Minimum-only payments can stretch debt out for years.

Causes & evidence

Most of a minimum payment can go to interest when you carry a balance. See credit card interest and APR.

What to do

1. Find your APR and the 'minimum payment warning' on your statement.
2. Pay more than the minimum, even a little extra helps.
3. Stop adding new charges to that card if you can.
4. Consider calling the issuer to ask for a lower APR.

Common mistakes: Common mistakes: believing the minimum is a 'safe' payment plan. Much of a minimum payment can go toward interest, so the balance shrinks slowly. Look at the minimum payment warning box on your statement, which shows how long payoff takes at the minimum. Even an extra small amount each month helps. Avoid adding new charges while paying down. Call the issuer and ask about a lower rate; sometimes just asking works. If you're overwhelmed, a nonprofit credit counselor can help you build a plan.

Speed Man tip: Pick a method: highest APR first (saves the most) or smallest balance first (quick wins).

Wrap-up: Minimum payments mostly feed interest. Pay extra and pause new charges. Ask the issuer for a lower APR.