Credit cards can become extremely expensive if balances are carried. This article covers real cost credit card purchase using real U.S. examples and practical payoff strategies.
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.
A $3,000 balance at 22% APR paying $120 per month can stretch beyond 3 years.
Adding just $50 per month can reduce payoff time by many months and save hundreds of dollars in interest.
Calculate your real payoff timeline here
In the United States, most credit cards now carry APRs above 20%, which makes even small balances expensive over time. Many people assume that making regular payments means they are making progress, but in reality a large portion of early payments goes toward interest.
For example, someone carrying a $5,000 balance while paying around $150 per month may feel responsible — yet they could still spend several years in repayment and lose thousands of dollars to interest alone. This is why understanding your payoff timeline is just as important as knowing your balance.
Seeing real numbers helps people change behavior. Once borrowers understand how long repayment actually takes, they are far more likely to increase monthly payments, stop new charges, and actively plan their debt payoff instead of reacting month to month.
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.