Credit Card Payoff Calculator
Calculate how long it will take to pay off your credit card debt and how much you can save with higher payments.
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Payoff Analysis
Understanding Credit Card Interest
Credit cards typically charge compound interest on outstanding balances. The Annual Percentage Rate (APR) is divided by 12 to get the monthly rate, which is applied to your balance each month.
Making only minimum payments means most of your payment goes toward interest, with very little reducing the principal balance. This is why it can take decades to pay off credit card debt with minimum payments.
Debt Payoff Strategies
Debt Avalanche
Pay minimums on all cards, then put extra money toward the highest interest rate card first. This saves the most money in interest.
Debt Snowball
Pay minimums on all cards, then put extra money toward the smallest balance first. This provides psychological wins and momentum.