Credit card cost

Nonnadiluca

Many years ago there was something on this site which gave the cost, in money and time, of borrowing £500 on a credit card and only paying the minimum monthly payment. I want to give my grandson a bit of financial education and think this would be really useful for him to know. I remember being gobsmacked when I read it! Can anyone help please?

eskbanker

https://www.moneysavingexpert.com/credit-cards/minimum-repayments-credit-card/ has a calculator and also an example of

using just the minimum repayment to pay off £3,000 in credit card debt (with no further spending on the card) would take a staggering 27 years, with an interest cost of almost £4,000.

but the two major variables are the interest rate and the minimum repayment basis, so there isn't one right answer that fits all cards....

Nonnadiluca

Thanks for that eskbanker, much appreciated as it illustrates the point I want to make perfectly.