Lucas and Luna break down the brutal math behind minimum credit card payments. Using the example of a $5,000 balance at 18 percent APR, Lucas shows how paying only the minimum can stretch a debt into 25 years of payments costing over $11,000 in interest. They discuss how issuers recalculate minimums, why the 'minimum due' triggers a psychological trap, and a simple mental trick to break free: the $10 add-on rule. Luna points out how auto-pay for the minimum creates a dangerous status quo, and they contrast the credit card trap with the structure of federal student loans.
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