If you make the minimum payment each month, the amount you pay decreases as your balance decreases.
It will take you 482 months (that’s more than 40 years!) to pay off your balance with this method. Plus, you’ll be paying an extra $9,430.63 in interest as well!
If you pay a fixed amount of $75 each month, you will pay off your debt in 81 months (just under 7 years) and will only pay an extra $2,564.97 in interest.
While this is still not perfect, it sure beats paying the minimum payments and taking more than 40 years to pay off your balance!
