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Credit Card Interest Per Month

Credit cards can become extremely expensive if balances are carried. This article covers credit card interest per month using real U.S. examples and practical payoff strategies.

How Credit Card Interest Works in the United States

Most U.S. credit cards charge APR between 18% and 29%. Interest compounds monthly or daily, meaning balances grow even when you make payments. Early payments mainly cover interest instead of reducing principal.

This is why many Americans feel stuck in debt despite paying every month.

Real Debt Example

If you owe $5,000 at 24% APR and pay $150 monthly, you could take nearly 4 years and pay over $1,800 in interest.

Why Credit Card Debt Becomes So Expensive

• High APR rates
• Compound interest
• Minimum payment traps
• Continuing to use cards while repaying

Common Mistakes

• Paying only the minimum
• Ignoring APR differences
• Using cards as long-term loans
• Not tracking payoff timelines

How Americans Can Reduce Credit Card Interest

• Increase monthly payments
• Stop new purchases
• Use balance transfers when possible
• Automate payments to avoid fees

Smart Payoff Strategy

Adding just $50 per month can reduce payoff time by many months and save hundreds of dollars in interest.

Use Our Calculator

Calculate your real payoff timeline here

Frequently Asked Questions

Is this accurate?
Yes. Calculations follow standard U.S. APR compounding.

Does this include fees?
No. Late fees and annual fees are not included.

Is this financial advice?
No. Educational purposes only.