Why does minimum payment take so long to clear a credit card?

Minimum payments are typically set at 1% of the outstanding balance plus the monthly interest charge (or £25, whichever is higher). As the balance falls, so does the minimum payment — meaning you pay almost nothing as the debt approaches zero. This design means a £3,500 balance at 24.9% APR on minimum payments alone takes over 16 years to clear and costs £6,130 in interest.

What is a typical credit card APR in the UK?

Standard UK credit card APRs in 2026 typically range from 20% to 30% for mainstream cards, with store cards and subprime cards charging 30%–50%+. 0% purchase and balance-transfer deals are available to those with good credit — typically for 12–24 months — but revert to the standard rate if not cleared in time.

Is a 0% balance transfer worth it?

A 0% balance transfer can save significant interest, but consider the transfer fee (typically 2–3% of the balance) and whether you can realistically clear the balance within the promotional period. Always set up a direct debit to make at least the minimum payment — missing one payment often voids the 0% offer immediately.

What happens if I only pay the minimum each month?

Paying only the minimum means most of your payment goes to interest rather than reducing the debt. Under FCA rules, lenders must warn you on statements how long minimum payments will take and what total interest you will pay. They must also offer you the option to set a fixed monthly payment above the minimum.

Credit Card Repayment Calculator 2026 | UK

How Credit Card Interest Works in the UK

Credit cards charge interest daily on the outstanding balance. The daily rate is APR ÷ 365. At the end of each statement period, all daily charges are added together to create your monthly interest charge.

How minimum payments are calculated

UK lenders typically calculate the minimum payment as the higher of:

A fixed amount (usually £25–£35), or
1% of the outstanding balance plus the monthly interest charge

This means as your balance falls, so does your minimum payment — which is why minimum-only repayment takes so long. A £3,500 balance at 24.9% APR paid on minimums alone takes over 16 years and costs £6,130 in interest.

FCA rules on minimum payments

Since 2021, the FCA requires lenders to contact customers who make minimum payments for 3+ years in a row and offer affordable repayment plans. Lenders must also show on statements how long minimum payments will take and what total interest will be paid.

0% balance transfer cards

Transferring a balance to a 0% card can save significant interest — but check the transfer fee (typically 2–3%), ensure you can clear it within the promotional window, and never miss a payment (one missed payment usually voids the 0% deal immediately).

Working It Out Step by Step

These are the sums the calculator runs, using Sophie's card from the worked examples below: a £3,500 balance at 24.9% APR. Your own card's terms may differ, so check your statement.

How to work out your minimum payment

Monthly interest: £3,500 × 24.9% ÷ 12 = £72.63.
1% of the balance: £3,500 × 1% = £35.00.
Add them: £72.63 + £35.00 = £107.63.
Compare with the fixed floor: £107.63 is more than £25, so the minimum is £107.63.

Only £35 of that first payment reduces the debt; the other £72.63 is interest. Next month the balance is a little lower, so the minimum is a little lower too. Once the 1%-plus-interest figure falls below the fixed floor, the floor becomes the minimum. The calculator uses a £25 floor, the bottom of the usual range.

How long will it take to pay off my credit card?

It depends on whether you let the payment shrink with the balance or keep it fixed. For the same £3,500 at 24.9% APR, with no new spending:

How you pay	Time to clear	Total interest
Minimum payment only (falls as the balance falls)	200 months (16.7 years)	£6,129.84
Fixed at the first minimum, £107.63	55 months	£2,386.54
Fixed £150 a month	33 months	£1,335.09
Fixed £200 a month	22 months	£893.77

The single biggest change is the first one: simply not letting the payment fall cuts the time from over 16 years to under 5. To see your own figures, choose "Fixed monthly payment" in the calculator above.

How much interest will I pay each month?

For a quick estimate, multiply the balance by the APR and divide by 12: £3,500 × 24.9% ÷ 12 is about £72.63 a month. Card issuers actually charge interest daily (APR ÷ 365 per day, about £2.39 a day on this balance), so the exact amount depends on the number of days in the statement period and when you pay.

Is a balance transfer worth the fee?

Compare the fee with the interest you would otherwise pay. A 3% transfer fee on £3,500 is £3,500 × 3% = £105. Paying £150 a month at 24.9% APR costs £1,335.09 in interest over 33 months. On a 0% deal the same £150 a month clears the £3,605 (balance plus fee) in 25 payments (24 of £150 and a final £5), provided the 0% period lasts at least that long and you make every payment on time. If the 0% period is shorter than the time you need to repay, the remaining balance moves to the card's standard rate.

For the wider picture, the guide how credit card interest builds up explains daily interest and the minimum payment trap, and should you overpay debt or save? covers whether spare cash should clear the card first. If you are thinking of consolidating card debt into a loan, the loan repayment calculator shows the fixed monthly cost of that option.

Worked Examples

Sophie — Minimum payments only

Balance£3,500

APR24.9%

StrategyMinimums only

Time to repay200 months (16.7 yrs)

Total interest£6,130

Total paid£9,630

Sophie — Fixed £100/month

Balance£3,500

APR24.9%

Monthly payment£100 fixed

Time to repay64 months (5.3 yrs)

Total interest£2,808

Interest saved£3,322 vs minimums

Raj — High APR store card

Balance£1,800

APR39.9%

Min only → years13.2 years

Min only → interest£4,604

£75/month → months49 months

£75/month → saves£2,737 interest

Frequently Asked Questions

Minimum payments are typically set at 1% of the outstanding balance plus the monthly interest. As the balance falls, so does the minimum — meaning you pay almost nothing when the debt is small. A £3,500 balance at 24.9% APR on minimums alone takes over 16 years and costs £6,130 in interest. Paying a fixed amount instead keeps the payment the same and clears the debt exponentially faster.

Standard UK credit card APRs in 2026 typically range from 20% to 30% for mainstream cards. Store cards and subprime cards often charge 35%–50%+. 0% purchase and balance-transfer deals are available to those with good credit scores — typically for 12–24 months — but revert to a higher standard rate at the end of the promotional period. Always check the revert rate before applying.

Usually yes, if you can clear the balance within the 0% period. Check: the transfer fee (typically 2–3% of the balance), the revert rate if you do not clear it, and your ability to be accepted (0% deals require good credit). Set up a direct debit for the minimum payment immediately — one missed payment usually voids the 0% offer and triggers the full standard APR.

Most of each minimum payment goes to interest rather than reducing the debt. Under FCA rules since 2021, lenders must warn customers who make minimum payments for 3+ consecutive years and offer an affordable repayment plan. Your statement must also show how long minimum payments will take and the total interest cost. If you are struggling, contact a free debt charity such as StepChange, National Debtline or Citizens Advice.

In most cases, paying off high-interest credit card debt first is mathematically better — a 24.9% APR is a guaranteed negative return, whereas savings rates are typically much lower. The exception is if you have no emergency fund — aim for at least 1 month's expenses in an easy-access savings account before aggressively repaying card debt, so unexpected costs do not land straight back on the card.

Credit Card Repayment Calculator