Some credit cards now charge rates in the 30% range. Here is what that means in plain money.
Monthly cost
Interest is roughly balance times APR divided by 12. At 34%, a $3,000 balance costs about $85 a month in interest alone. A $10,000 balance costs about $283 a month before any of the principal goes down.
Why the balance barely moves
If the minimum payment is close to the monthly interest, most of each payment goes to the card company and the balance shrinks very slowly.
Options to check
- Pay the highest rate first (the avalanche method) to cut total interest.
- Balance transfer card: often 0% for a set period, usually with a 3-5% transfer fee. Note the promo end date.
- Credit union personal loan: federal credit unions in the US are generally capped at 18% APR.
- Ask the issuer for a lower rate or a hardship plan if payments are a struggle.
Free tools
- Credit card interest calculator
- Credit card payoff calculator
- Debt Snowball & Avalanche Payoff Planner
General information, not financial advice.