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Credit Card Minimum Payment Danger

See the real cost of only paying the minimum — and how much faster you escape with even a small extra payment.

Canadian 2% Minimum Real Payoff Timeline Interest vs Extra Payment
Your Credit Card Details
How minimum payments work in Canada: Your minimum payment is the greater of 2% of your outstanding balance or $10. This keeps you in debt far longer than most people expect.

The Minimum Payment Trap

Banks set low minimum payments to maximize interest revenue. At 19.9% interest on a $2,000 balance, paying only the minimum means the majority of your payment goes to interest — your balance barely moves. Adding even $25–$50 extra per month dramatically shortens your payoff timeline and saves you hundreds of dollars.

Minimum Payment Only (2% or $10)
Years to Pay Off
Total Interest Cost
Minimum payments only

This calculator uses the Canadian standard minimum payment: 2% of outstanding balance or $10, whichever is greater. Results are estimates for educational purposes only.