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Tuesday, October 20, 2026Updated 01:23 UTC

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Your Credit Card Minimum Is Mostly Interest – Pay a Fixed Amount Instead

Source: Money Crashers · Oct 19, 2026 22:30 UTC

Rolls of U.S. dimes and nickels in paper coin wrappers — File photo dmuth / Flickr · CC BY-SA 2.0 · Source

The Quick Take

Take a $5,000 balance at a 24% APR, the card’s yearly interest rate, and the first month’s interest comes to about $100. A minimum of that interest plus 1% of the balance is $150, and only $50 of it goes... Source

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