What happens if we pay a credit card bill?

What happens when you make a card payment?

Okay, so like, card payments. Ugh, remember that time I bought those super expensive (for me) shoes at Nordstrom in the mall? It was, like, last Tuesday, I think. Was it Tuesday? No, Wednesday. Wednesday at 3 PM.

I swiped my debit card; it felt so wrong but so right! I needed those shoes!

• Authorize: The POS machine reads the card data
• Verification: My bank, Chase, gets the request.
• Funds: They check if I have enough money. I almost didn't, lol.
• Approval: Nordstrom gets the ok.
• Settlement: Chase transfers the funds, and bam! shoes are mine!

My checking account immediately took a hit. My heart kinda sank. Seriously. Like a rock.

Now, with credit cards, totally different vibes. You get a bill later, right? Pay it off... or don't. Interest is a killer. I never use them. Seriously, I won't ever use them.

The shoes, though? Worth it. I think. Probably.

What is the minimum payment on a $3,000 credit card?

Ugh, minimum payments. Okay, $3000 on a credit card... that's not great. Gotta figure that out. So, like, what is the minimum payment anyway?

• Usually it's around 1-3% of the balance, right? Plus interest. I think my Bank of America card does 2%. Need to check statement later, so annoying.

• Could be a flat fee too, like $25? It just depends. Credit card companies are sneaky.

Wait, there's a calculator thing mentioned. Gotta find it. Maybe that will tell me. I hate math ugh.

• Let's say 2% of $3000 is $60. But then there's interest… which is another beast. I think my interest is 23.99%. High!

• Ugh, the calculator is telling me it will take years to pay this off if I only do minimum payments. YEARS.

• I need to increase my payments stat. Maybe cut back on eating out, seriously. I spend like $300 on coffee a month. Wow.

So the takeaway is that minimum payments are traps. Must. Pay. More.

• Pay more than the minimum. It's not a suggestion, it's a command. Do it. Seriously, me.