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Your payment must cover accrued interest before the balance can meaningfully decline. Paying more than the minimum generally reduces the balance faster and cuts future interest, assuming no new charges or penalties.
When comparing payoff plans, use the same interest rate and starting balance for each scenario. Credit card interest often accrues daily, so real statement results may differ slightly from simplified monthly estimates.
Example: On a $5,000 balance at 20% APR, a $150 monthly payment takes substantially longer and costs more interest than paying $250 monthly, assuming a constant rate and no new purchases.
Illustrative calculations are estimates, not financial advice.