The math on carrying a credit card balance vs paying it off every month is the most straightforward argument in personal finance.

Average credit card APR in the US: approximately 24% as of 2024. If you carry a $3,000 balance and only make minimum payments of about $60/month, here's what happens:

• Time to pay off: 19 years
• Total interest paid: approximately $4,200
• Total paid: $7,200 on a $3,000 balance

The interest alone is more than the original debt. At 24% APR, your debt doubles in about 3 years if you make only minimum payments.

The credit card is a tool with two completely different user experiences: used as a charge card (paid in full monthly), it offers rewards and consumer protection at zero cost. Used as a revolving credit product, it's one of the most expensive forms of debt available.