Credit Card Payoff Calculator
See how long it takes to wipe out a balance and how much interest you’ll pay.
Crushing credit card debt
Credit card APRs of 20–29% mean that minimum payments barely cover interest. A $5,000 balance at 24% APR with only minimums takes 22 years to pay off and costs $7,000+ in interest — more than the original debt. The way out is paying aggressively above minimums and attacking cards strategically.
Two proven methods: the avalanche (highest APR first) saves the most money, while the snowball (smallest balance first) creates momentum through quick wins. Behavioral research shows snowball adherents finish more often — so the best method is whichever you'll actually follow through on.
Frequently asked questions
What's the fastest way to pay off credit card debt?
Mathematically, paying the highest-interest card first (the 'avalanche' method) minimizes total interest paid. Psychologically, paying the smallest balance first (the 'snowball' method) creates momentum. This calculator shows both approaches so you can choose based on whether you're optimizing for dollars saved or motivation.
Should I take a balance transfer offer?
Often yes — if the 0% intro period is long enough to pay off the balance. A 21-month 0% card with a 3% transfer fee on $10,000 saves roughly $2,000–3,000 versus 22% APR. The catch: miss a payment and the intro rate vanishes. Only transfer what you can realistically pay off before the promo ends.
Why does only making minimum payments take so long?
Minimum payments are typically 1–3% of the balance, which is barely above the monthly interest on high APRs. On a $5,000 balance at 24% APR with 2% minimums, it takes about 22 years to pay off and costs around $7,000 in interest. Always pay more than the minimum if at all possible.
Does closing paid-off cards hurt my credit?
Often, yes — temporarily. Closing a card shrinks your total available credit, which raises your utilization ratio. It also shortens your average account age if it was an old card. Keeping paid-off cards open with occasional small charges is usually better for your score.
Advertisement
728 × 90