Suppose you purchase a $400 plane ticket for vacation and charge it to your credit card, which has an 18% interest rate.
Instead of paying off the balance in full, you make the minimum payment each month of $15.
By the time you pay off the balance, after almost three years, you have paid $115 in interest for a total cost of $515.*
Charging to a credit card may seem like an easy way of making a big purchase in the moment. However, paying down such purchases can be a long and expensive process if you make only the minimum payments.