EvaFi reveals the hidden costs behind minimum credit card payments and what consumers need to know.
Irvine, CA September 03, 2025 –(PR.com)– EvaFi (NMLS #2589975), a leading consumer financial wellness company, today released a comprehensive analysis revealing the devastating long-term impact of making only minimum payments on credit card debt. The study demonstrates how this common practice can trap consumers in debt for decades, often resulting in interest payments that exceed the original borrowed amount.
Key Findings
The analysis reveals that credit card companies generally calculate minimum payments monthly by focusing only 1% of the balance as the balance reduction.
Minimum payments = Interest + 1% of the outstanding
A consumer with a $25,000 credit card balance at 24.99% APR, making only minimum payments will result in:
447 monthly payments to pay off the debt
$51,402 in interest charges
$76,402 in total payments, more than triple the original debt
“Our research demonstrates that credit card minimum payment structures often result in extended repayment timelines that maximize finance charges,” said Oren Dali, Managing Partner at EvaFi. “This industry-standard approach to payment calculation can significantly extend a consumer’s debt horizon, often resulting in interest charges that exceed the original borrowed amount.”
Solution Framework
EvaFi has launched a comprehensive debt consolidation platform to help consumers escape the minimum payment cycle. The platform offers:
– Access to lower-interest consolidation loans
– Personalized debt reduction strategies
– Educational resources for long-term financial health
– Algorithmic loan matching technology
About EvaFi
EvaFi is a financial technology company dedicated to helping consumers find better loans for better living. Through its innovative platform, EvaFi connects consumers with optimal lending solutions that promote financial wellness and debt freedom.
Contact Information:
EvaFi
Alex Cornwell
1-385-332-4917
Contact via Email
www.evafi.com
Read the full story here: https://www.pr.com/press-release/947394
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