What the statement box must show
Regulation Z section 1026.7(b)(12) requires a credit card periodic statement to carry a heading that begins "Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance." [1] Under that heading the issuer must give a minimum payment repayment estimate, a minimum payment total cost estimate, a statement that both assume only minimum payments and no new amounts, and a toll-free number for credit counseling information. [1]
The same section usually requires a 36-month comparison: the monthly payment that would repay the balance in about 3 years, its total cost and the estimated savings. It is not required when the minimum-payment estimate is 3 years or less, when the rounded 36-month payment would be less than the required minimum, or in specific mixed-balance cases. [1]
Worked example: why the minimum stretches out
This card is invented. The balance is $3,000 at a 24% APR, interest is modeled as 2% per month, and no new purchases are made. The invented minimum payment is 1% of the balance plus that month's interest, with a $35 floor. As the balance falls, so does the minimum, which is why the tail is so long.
Paying only that minimum takes 150 months, about 12.5 years, and $4,441.71 of interest. A fixed $117.70 each month, the amortizing payment for 36 months, clears it in 36 months with $1,237.11 of interest. A fixed $150 clears it in 26 months with $869.64 of interest. These figures come from a simple monthly model computed for this page, not from any issuer's formula; your statement uses the issuer's own method and the rounding rules in Appendix M1. [1]
| Invented plan | Months to $0 | Interest paid | What it requires |
|---|---|---|---|
| Minimum only (1% + interest, $35 floor) | 150 | $4,441.71 | Nothing beyond the minimum; payment falls over time |
| Fixed $117.70 | 36 | $1,237.11 | Hold the payment steady even as the minimum drops |
| Fixed $150 | 26 | $869.64 | About $32 a month more than the 36-month figure |
Turn the box into a plan
- Copy the minimum-payment months, total cost, 36-month payment and savings from your latest statement into the worksheet with the statement date.
- Stop adding new purchases to the card you are paying down; the statement estimates assume none.
- Pick a fixed payment you can sustain for every month and set it as an automatic payment, not as a share of the falling minimum.
- If you carry balances at different APRs on one card, remember that the excess over the minimum is generally applied to the higher-APR balance first. [2]
- Recheck the box each statement; the estimate updates as the balance changes.
How to read each line of your own box
Field names vary slightly by issuer, but Regulation Z requires the same content. [1] Copy each figure with the statement date before you change anything, so you can compare next month.
| Line in the box | What it means | What to do with it |
|---|---|---|
| Minimum payment repayment estimate | Months, or years if 2 years or more, to repay the current balance with only minimums | Treat as a ceiling on how long the debt could last |
| Minimum payment total cost estimate | Principal plus estimated interest under minimum-only payments | Subtract the balance to see the interest at stake |
| 36-month estimated payment | The monthly amount that would repay the balance in about 3 years | Use as a first target for a fixed payment |
| Savings estimate | Difference in total cost between the 36-month and minimum-only paths | The cost of staying on the minimum |
| Credit counseling number | Toll-free number for credit counseling information | A route for help if the 36-month payment does not fit |
When to keep paying the minimum and when to look further
If the minimum is all your budget can carry this month, pay it on time; a missed payment can add late fees and other penalties under your card agreement. Keep the current payment until you can hold a higher fixed amount, then raise it. If several debts compete for the same extra dollars, the related avalanche-or-snowball guide shows how the order changes total interest. The credit counseling number on the statement is the issuer-provided route for help. This page is US consumer education, not personalized advice.
Questions before you decide
Why is there sometimes no 3-year figure on my statement?
Regulation Z does not require the 36-month disclosure when the minimum-payment estimate is already 3 years or less, when the rounded 36-month payment is below the required minimum payment, or in certain mixed-balance cases.
Where does a payment above the minimum go?
The CFPB says any amount above the minimum is generally applied to the balance with the higher APR, with an exception near the end of a deferred-interest promotion.
Does the statement estimate assume new purchases?
No. The rule requires the statement to say the estimates assume the current balance, only minimum payments, and no additional amounts added. New purchases make the real payoff longer.
Follow the sources
- CFPB: Regulation Z, 12 CFR 1026.7 periodic statement Checked Oct 13, 2026
- CFPB: How do credit card payments work? Checked Oct 13, 2026
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