Credit card companies set minimum payments at roughly 2-3% of the balance. It keeps you in debt for as long as possible, which is precisely the point.
Take a £3,000 credit card balance at 24.9% APR. The minimum payment in month one might be around £75. Pay only that amount each month, letting the minimum reduce as the balance falls.
Pay £150 a month instead — fixed, not minimum — and the balance clears in around 2 years and 3 months. You save £3,600 and 25 years.
The minimum feels manageable. £75 a month on a £3,000 debt sounds reasonable. The problem is that almost all of that payment covers interest, with almost nothing going to reduce the actual balance. As the balance drops slowly, so does the minimum payment. The trap self-reinforces.
Fix your payment at a flat amount above the minimum and don't let it drift down as the balance falls. Even an extra £20 a month on top of the minimum makes a significant difference over time.
Balance transfer offers can help, but only if you stop using the original card and have a clear plan to clear the transferred balance before the 0% period ends.