Why is it more difficult to get out of debt when only paying the minimum payment?

Question

A.
Your credit limit always resets, so you have a lot of spending power each month.

B.
Your entire minimum payment goes toward principal and the interest continues to compound.

C.
The majority of your minimum payment is going toward interest and finance charges and only a small amount toward the principal.

Answer 1

C. The majority of your minimum payment is going toward interest and finance charges and only a small amount toward the principal.

When you only make the minimum payment on your debt, a significant portion of that payment typically goes toward interest, leaving only a small amount to reduce the principal balance. This means it takes longer to pay off the debt, and you end up paying more in interest over time.