EconSim

Credit-Card Debt Trap

Compound interest in reverse: see how paying only the minimum keeps a balance alive for years.

Feel how the minimum payment creates an illusion of control while interest compounds the balance — and how paying a bit more slashes both the time to payoff and the total interest.

  • Compound interest on debt
  • The minimum-payment trap
  • APR
  • Overconfidence bias

Guided walkthrough

Step 1 of 3
Predict first

Leave the payment at the minimum by dragging Monthly payment down to $0, then read the payoff time and total interest.

Before you act, predict what will happen. How many months does the minimum-only path take, and how much interest does it cost? Then do it — did your prediction match what happened?

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Balance over time

The minimum-only balance lingers for years; a fixed payment drives it to zero.

Total interest paid

What each strategy costs in interest over the life of the debt.