Credit Card Minimum vs Fixed Payoff
**Minimum payments** mostly cover interest—balances can last years. A **fixed payoff** (avalanche or snowball amount) cuts interest dramatically and sets a clear debt-free date.
Step by step
1. List APR by card
Pay highest APR first (avalanche) unless you need quick wins (snowball).
2. Set a floor payment
Target 2–3× minimum on the focus card while paying minimums elsewhere.
3. Track months remaining
Use a payment schedule to see interest saved vs minimum-only path.
Minimum vs fixed
A $200 fixed payment on $8k at 22% APR beats minimums by years.
- Minimum only: Low cash flow now; maximum interest; unclear payoff date.
- Fixed payoff: Predictable timeline; large interest savings.
Use our calculators
Common mistakes
- Paying minimum on high-APR while saving in low-yield cash
- Missing due date while overpaying another card
FAQ
Should I consolidate first?
0% balance transfer can help if you will not add new charges.