Getting Out of Credit Card Debt
At 23% APR the minimum payment is a repayment schedule designed to last decades.
At a glance
Figures checked 1 Sep 2026
What to take away
- Minimum payments are structured so the balance lasts years.
- Call and ask for a lower APR — it works more often than people expect.
- Stop using the cards while paying them down, or nothing changes.
Card interest compounds daily on the average balance. A $8,500 balance at 22.9% accrues roughly $160 of interest a month before any payment is applied, which is why minimum payments feel like standing still.
The sequence
- Stop adding to the balance. Remove the card from stored payment methods and your wallet.
- Call each issuer and ask for a rate reduction. Mention your payment history and any competing offer.
- Consider a 0% balance transfer if your credit qualifies and the transfer fee is worth it.
- Pick avalanche or snowball and commit.
- Direct every windfall — refund, bonus, gift — straight at the target balance.
Paying only the minimum on $8,500 at 22.9% takes well over a decade and costs more in interest than the original balance. Increasing the payment is the single highest-return action available to most households.
If the payments are unaffordable
Contact a non-profit credit counselling agency before a for-profit settlement company. A debt management plan can reduce rates substantially through negotiated arrangements, without the fees and credit damage settlement involves.
Common questions
Substantially. Utilisation is around 30% of the score and it updates as balances fall — often within one or two statement cycles.