Why credit card interest matters
Credit card balances can accumulate interest when they are not paid in full. A higher interest rate generally makes it harder to reduce the balance quickly.
When interest is added to the balance, part of future payments may go toward covering that interest rather than reducing principal.
How increasing your payment can help
Paying more than the minimum can reduce the balance faster and generally reduce the total interest paid.
The exact effect depends on the balance, interest rate, payment amount, and how the card issuer calculates interest.
Create a payoff estimate
A payoff calculator can help you compare different monthly payment amounts and estimate how long it may take to eliminate a balance under the assumptions used by the calculator.