Conquer Your Credit Card Debt
Credit card debt can feel overwhelming, especially with high interest rates compounding against you. The Credit Card Payoff Calculator is designed to help you regain control. By inputting your balance and payment amount, you can visualize exactly how long it will take to reach zero.
The High Cost of Minimum Payments
Credit card issuers set minimum payments low—often just 1% to 3% of your balance. While this keeps your account in good standing, it barely dents the principal. Most of that payment goes straight to interest, keeping you in debt for years longer than necessary.
The Power of Extra Payments
Adding even $20 or $50 to your monthly payment can have a dramatic effect. Since your minimum payment covers the mandatory interest, 100% of any extra amount reduces your principal directly.
This creates a snowball effect: lower principal → lower interest next month → more of your payment hits the principal.
Strategies to Pay Off Faster
- Avalanche Method: Focus all extra money on the card with the highest interest rate (APR). This mathematically saves you the most money.
- Snowball Method: Focus on the card with the smallest balance. Paying it off completely gives you a psychological win and frees up its monthly payment to attack the next debt.
- Balance Transfer: If your credit allows, moving high-interest debt to a 0% APR balance transfer card can pause the interest accumulation, helping you pay down principal faster.
