How Credit Card Interest Works

A credit card can help you get what you need—but if you're only making minimum payments, that purchase could stick with you longer than the product itself. In this Extra Credit video, Possible’s Chief Credit Officer Ellen Falbo breaks down what happens when you buy a $500 TV on a card with 20% APR.

She walks through three repayment options: making the minimum payment, paying $50 a month, and paying the full balance when the statement arrives. The difference? Thousands of dollars and years of debt. Whether you're building credit or trying to stay out of it, this is a must-watch video for understanding how interest really works—and how to avoid it.

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