The Minimum Payment Trap, Explained Simply

Описание: What is debt, how do credit and loans work, and why does paying only the minimum on a credit card cost so much?

In this short video:
• What debt really is, explained with a cup of sugar
• How interest works: the cost of borrowing
• The difference between a loan and a credit card
• Why paying only the minimum can take almost 20 years

Example: a debt of 10,000 at 15% a year. Paying only the minimum takes about 19 years and costs about 6,860 in interest. Paying 500 a month clears it in about 2 years, with about 1,580 in interest.

Same debt. Far less cost. Pay more than the minimum whenever you can.

Example only. Real cards vary. This video is for general education, not financial advice.

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