The minimum payment is the smallest amount your card company will accept each month without charging you a late fee. It keeps your account in good standing, but it isn't designed to clear your debt quickly. On a typical card, paying only the minimum can take well over a decade.
This guide explains how minimums are worked out, how long they really take, and a simple way to beat them.
How is the minimum payment worked out?
The FCA sets a floor. For credit and store cards taken out since April 2011, the minimum must be at least the interest, fees and charges for the month, plus 1% of the balance (rule CONC 6.7.5R). Your card company can ask for more than that, and most also set a small fixed minimum, often £5 to £25, so you pay whichever is higher. You'll find your card's exact rule in its terms or on your statement.
The key point is that the minimum is a share of what you owe. As your balance falls, the minimum falls too, so each month you pay a little less off. That's why it takes so long.
How long does paying only the minimum take?
Say you owe £3,000 at 24.9% APR and stop using the card. With a minimum of interest plus 1% of the balance (at least £25), your first minimum is about £92. Here's how the options compare:
What you pay each month | Time to clear | Interest paid |
|---|---|---|
Only the minimum (falls over time) | 15 years 5 months | about £5,090 |
£92 fixed (today's minimum, kept the same) | 4 years 7 months | about £2,060 |
£100 fixed | 4 years | about £1,740 |
£150 fixed | 2 years 3 months | about £920 |
£200 fixed | 1 year 7 months | about £630 |
Look at the first two rows. Paying exactly the same as today's minimum, but keeping it fixed instead of letting it fall, cuts nearly 11 years and about £3,000 of interest. You don't need to find more money to make a big difference; you just need to stop the payment shrinking.
Put your own balance, rate and payment into the credit card payoff calculator to see your debt-free date.
What about 0% cards?
On a 0% balance transfer or purchase card there's no interest, so the minimum is usually just a small percentage of the balance, often 1%, or the fixed floor. On £3,000 that's about £30 a month.
The risk is the end of the 0% period. If you only pay the minimum, most of the balance will still be there when the rate jumps. Divide your balance by the months left at 0% to find what you need to pay to clear it in time. See is a 0% balance transfer worth it? for more.
What is persistent debt?
If you've paid more in interest and charges than off the balance over 18 months, the FCA calls it persistent debt, and your card company must write to you suggesting you pay more. If you're still in persistent debt after 36 months, it must offer you a way to clear the balance in a reasonable time, and it may suspend your card. If you can't afford to pay more, it must treat you fairly and can reduce or stop interest.
A persistent debt letter isn't a punishment, but it is a sign the minimum isn't working.
A simple plan to beat the minimum
Find this month's minimum. It's on your statement or in your app.
Fix your payment at that amount or more. Change your direct debit from "minimum payment" to a fixed amount, so it doesn't fall as the balance drops.
Stop adding to the card. Remove it from your digital wallet and use a debit card for everyday spending.
Add anything extra you can. Even £10 or £20 more a month shortens the time. Windfalls go straight off the balance.
Got several cards? Pay the minimum on all of them, then put the extra on one at a time. See our snowball vs avalanche worked example and plan them together in the payoff calculator.
When to get help
If you can only afford the minimums, you're using cards to pay for essentials or other debts, or you've missed payments, talk to your card company. It must treat customers in financial difficulty fairly and can freeze interest or agree a plan.
Free, confidential advice is also available from StepChange, National Debtline and Citizens Advice. You'll find them on our financial resources page.
For a bigger balance, how long it takes to pay off £5,000 of credit card debt shows the same numbers at a larger scale.
Examples assume £3,000 at a fixed 24.9% APR with monthly interest, a minimum of interest plus 1% of the balance (at least £25), no new spending and no fees. Your card's rate and minimum payment rules may differ. This guide is general information, not financial advice.