How Long Paying Only the Minimum Takes to Clear Debt

If you owe £1,500 on a credit card and pay only the minimum each month, Santander's own worked example puts the time to clear the balance at 22 years and 5 months¹. Other providers' examples run even longer: a £3,000 balance at a 24% effective rate takes 28 years and 3 months², a £5,000 balance takes 32 years and 7 months³, and a £2,500 balance takes 12 years and 11 months⁴.

The reason is simple arithmetic. A minimum payment is usually around 3% of the balance or £5, whichever is higher⁵, and minimum payments usually only cover the interest and charges on a debt⁶. Most of each payment goes on interest, so only a small slice reduces what you owe, and the balance falls very slowly.

This page explains why minimum payments stretch debt out for so long, how the interest rate changes the picture, what paying more than the minimum does, and where to get free help if the debt is becoming unmanageable.

Paying only the minimum: 22 years and 5 months on £1,500

The headline figure comes from Santander's own persistent debt guidance, which works through a £1,500 balance paid at the minimum each month. The result is 22 years and 5 months¹. Santander repeats the same figure in its follow-up guidance on persistent debt⁹.

Other providers publish their own examples, and the pattern is consistent. Halifax shows a £3,000 balance at a 24% effective interest rate, with a starting minimum payment of £84 that reduces over time, taking 28 years and 3 months to clear². HSBC's example uses a £5,000 balance at 23.9% a year, a £141 minimum payment that decreases as the balance goes down, and a clearance time of 32 years and 7 months³. Tesco Bank's example uses a £2,500 balance and gives 12 years and 11 months⁴. first direct uses a £150 monthly minimum payment that decreases as the balance falls, and gives 29 years and 6 months¹⁰.

The differences come from the balance, the interest rate and how each provider sets its minimum. What they share is the shape of the outcome: on minimum payments alone, a modest balance can outlast a mortgage.

Why minimum payments take so long to clear a balance

A minimum payment is not designed to clear a balance quickly. It is designed to keep the account up to date. Citizens Advice explains that if you do not pay off the balance each month, you will be asked to repay a minimum amount, typically around 3% of the balance due or £5, whichever is higher⁵. On a £1,000 balance with a 2% minimum, HSBC's example shows you would need to repay at least £20 a month plus the interest rate¹¹. StepChange's example is similar: on £1,000 with a 3% minimum, you would pay back at least £30 a month⁶.

Because minimum payments usually only cover the interest and charges on a debt⁶, the amount left to reduce the balance is small. As the balance falls, the minimum payment falls with it, so the repayment slows down rather than speeding up. StepChange puts it plainly: making minimum payments could mean you end up paying the debt over a long time¹².

National Debtline's example shows the contrast. A credit card debt paid at the minimum only would take around four and a half years to clear, but the same debt paid at £200 a month would be cleared in around one year and eight months, saving well over £1,000 in interest¹³. The balance is the same; only the payment changes.

How interest rates change the clearance time

The interest rate is the single biggest lever on how long minimum payments last. The higher the rate, the more of each payment goes on interest and the less reduces the balance, so the debt runs longer. Credit cards often start borrowers on a low rate of interest or none at all, with the rate increasing after a certain amount of time¹⁴.

Rates have risen sharply in recent years. Bank of England data showed the average interest rate households pay on credit cards reached 23.8% in October 2023, the highest since December 1995 and up from 21.83% a year earlier¹⁵. Moneyfacts data showed the average purchase APR on all credit cards reached 34.7% in February 2024, up from 30.6% a year earlier¹⁵.

Some cards start cheap and then get expensive. Citizens Advice explains introductory interest rates: you start off paying a low rate of interest or none at all, and the rate then increases after a certain amount of time⁵. If you are on a promotional deal, Experian warns that you may have to pay standard interest rates if you do not pay off the card before the promotional period ends and meet all minimum payments on time and in full¹⁶. M&S Bank's balance transfer guidance is blunter: you will also lose your promotional rate and interest will be charged at the standard rate if you are late making at least your minimum payment in any month¹⁶.

Paying the minimum on time each month

Making at least the minimum payment on time each month is the basic requirement on every credit card. Halifax states you must make at least the minimum payment on time each month, but recommends paying as much as possible to reduce your balance and limit any interest costs¹⁷. Lloyds Bank uses the same wording¹⁸, and its first credit card guidance repeats it¹⁹. Chase's card agreement says you need to pay at least your minimum payment by the due date shown in your statement each month²⁰. Halifax's residual interest guidance says you have to make at least the minimum payment on time each month²¹.

Meeting the minimum on time matters beyond avoiding a late fee. On the Lloyds Ultra Credit Card, for example, you must make at least your minimum payment on time each month to continue earning cashback²². Missing it can cost you more than the payment itself.

Paying the minimum on time is not the same as paying the minimum forever. StepChange's guidance for credit-builder cards says that if you cannot pay in full, make sure you make the minimum payments²³. HSBC's own tips say that if you cannot pay in full, it still makes sense to pay more than the minimum to reduce the amount of interest you pay²⁴.

Paying more than the minimum: what it changes

Paying more than the minimum is the one change that shortens the term most directly. National Debtline's example shows a debt cleared in around one year and eight months at £200 a month, against around four and a half years at the minimum, saving well over £1,000 in interest¹³. The balance is identical; the payment is not.

Some providers build a higher payment into the account. RBS explains its Minimum Payment Plus, which is designed to ensure the balance on your credit card is reducing and to avoid long term debt on your card, by paying more than the minimum payment each month²⁵. NatWest's version changes each month dependent on the credit card balance²⁶. If your provider offers something like this, it is worth understanding what it does before you opt in or out.

There are also rules that push the minimum up. Nationwide says that if you go over your limit, you will not be charged, but the amount owed over your limit is added to your minimum payment on your next statement²⁷. StepChange warns that your minimum payments will rise if you take a payment holiday, because of interest added during that time²⁸, and that your monthly minimum payments rise to cover the extra interest that was not paid²⁹.

If you are considering moving the debt to a cheaper deal, the balance transfer route has its own costs and conditions, and the minimum or fixed payment comparison sets out what each approach does to the term.

What happens if you miss the minimum payment

Missing the minimum payment due date has consequences that outlast the month. A payment can take three working days to clear⁷, so paying on the due date itself risks being late. Missed or late payments can negatively affect your credit score³⁰, and late payments stay on your credit history for six years, as do missed payments and defaults⁷. All missed, late or partial payments are recorded on your credit file for at least six years³¹. Lenders assessing you will see a small number next to each late payment to advise them how many months late the payment was⁷.

If the account falls into arrears, the Consumer Credit Act 1974 gives you a breathing space. If you have missed payments, the default notice should give you at least 14 days to pay the arrears³², and StepChange's guidance says they give you at least two weeks to make up missed payments³³.

On a promotional deal, the cost of a missed payment is higher still. M&S Bank states that you will lose your promotional rate and interest will be charged at the standard rate if you are late making at least your minimum payment in any month¹⁶. Experian's switching guidance makes the same point: do try and pay off the card before the promotional period ends, and meet all minimum payments on time and in full¹⁶.

Where your statement shows the minimum payment

Your credit card statement shows your minimum payment and when it is due³⁰. Capital One's guidance sets out what else appears: details of all transactions you make will be shown on your statement, along with the minimum amount you must pay and the date by which your provider must receive at least your minimum payment³⁴.

What the statement does not usually show is how long the debt will take to clear at that payment. That is where a repayment calculator helps, and where your provider's persistent debt letters come in. If you are making minimum payments to your credit card, store card or catalogue account, StepChange can help⁸, and the same applies to store card and catalogue account holders making minimum payments³⁵.

If you have been making minimum payments for a long time, the rules require more from your provider. Credit card providers must, 18 months after the warning letter, offer customers a method of repaying their balance over a reasonable period, which could be by reducing or waiving interest rates or charges¹⁵. The persistent debt rules explain how that process works and what to expect.

Who to complain to if you are struggling

If you have a complaint about how your card provider has handled your account, the route is the same as for any financial product. MoneyHelper's guidance is to contact customer services, make a formal complaint, and note that they have eight weeks to investigate and give a final response; if a customer still does not agree, the complaint can go to the free Financial Ombudsman Service³⁶. The Northern Ireland guidance is the same: the bank gets at least eight weeks to try to resolve the complaint, and the bank should then send a final decision letter telling the customer how to contact the Financial Ombudsman Service³⁷.

For complaints about a card payment or direct debit specifically, the Financial Ombudsman Service says the business must look into things and get back to you within 15 days, and then has to send you a response within 35 days³⁸. If a debt management company is involved, you can ask them to reply within 14 days³⁹.

Free, impartial debt advice is available and does not affect your credit file. StepChange, National Debtline and MoneyHelper all offer it, and the help with credit card debt page sets out the options in more detail. If you are in Scotland or Northern Ireland, the rules and the advice services differ, and the debt in Scotland and debt in Northern Ireland pages cover those separately.