Why is paying only the minimum payment on a credit card dangerous?

Minimum payments usually cover only the monthly accrued interest plus 1-2% of the principal balance. Paying only the minimum can stretch a $5,000 balance over 20+ years and cost thousands in extra interest fees.

What is the Debt Snowball vs Debt Avalanche payoff method?

The Debt Avalanche method prioritizes paying off debts with the highest interest rates first (saves the most money). The Debt Snowball method pays off the smallest balance first (gives fast psychological wins).

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Credit Card Payoff Calculator

Debt Freedom Roadmap & Interest Savings

Time Until Debt Free

34 Months

Approx 2.8 Years

Total Cumulative Payments: $10,200

Total Interest Paid to Bank: $2,200