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The Minimum Payment Lie

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Transcript

Buck
I always pay the minimum on my credit card, that's what it's FOR right?
Sage
A $5,000 balance at 22% APR, minimum payments only? That's 24 years and $7,000 in interest.
Buck
TWENTY-FOUR YEARS?! I'll have grandkids by then!
Sage
Pay even $50 extra a month and you cut it down to under 6 years.
Buck
So 'minimum' basically means 'maximum pain, slowly.'
Sage
Exactly. Pay more than the minimum whenever you can.

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