If you carry a credit card balance month-to-month with a 24% APR, approximately how much interest do you pay per month on a $1,000 balance?

At 24% APR, the monthly interest rate is 2% (24% ÷ 12). On a $1,000 balance, that's approximately $20 in interest per month, or over $240 annually. This illustrates why carrying high-interest credit card debt is one of the most expensive financial habits and why paying balances in full is critical.